While individual labor supply curves may bend backward, market labor supply curves are likely to be upward-sloping throughout, since higher wages induce new workers to enter the labor market.

Question

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Individual labor supply curves can bend backward due to the income effect outweighing the substitution effect at higher wages, but market labor supply curves generally remain upward-sloping as higher wages attract more workers into the market.

While Individual Labor Supply Curves May Bend Backward, Market Labor