In general, the labour supply curve
A)slopes downward because firms will hire fewer workers at higher wages.
B)slopes upward because as the wage rises, the opportunity cost of leisure increases.
C)is vertical at the equilibrium wage rate.
D)is perfectly elastic at the equilibrium wage rate.

Question

Quizplus · Accepted Answer

The labour supply curve represents the relationship between the wage rate and the amount of labour supplied by individuals. As the wage rate rises, the opportunity cost of leisure increases, which means that individuals will be more willing to supply their labour. Therefore, the supply curve slopes upward.

In General, the Labour Supply Curve