An increase in wages raises the opportunity cost of leisure and leads to an increase in the quantity supplied of labour.

Name: An increase in wages raises the opportunity cost of leisure and leads to an increase in the quantity supplied of labour.
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When wages increase, people may feel like they are giving up more potential income by taking leisure time instead of working. Therefore, they may choose to work more and increase the quantity supplied of labour.

An Increase in Wages Raises the Opportunity Cost of Leisure