The labour supply curve is positively sloped because:
A) more people are willing to work at low wages than at high wages.
B) more people are willing to work at high wages than at low wages.
C) employers are willing to hire more people at low wages.
D) employers are willing to hire more people at high wages.

Question

Quizplus · Accepted Answer

According to the law of supply, the quantity supplied of a good or service increases as its price increases. The labour supply curve is based on the same principle, where individuals are willing to supply more labour at higher wages, as it provides a greater incentive for them to work. Therefore, the labour supply curve is positively sloped, indicating an increase in the quantity of labour supplied as wages increase.

The Labour Supply Curve Is Positively Sloped Because