The supply of labor curve slopes upward because, with a higher wage, the opportunity cost of leisure rises.

Question

Quizplus · Accepted Answer

The upward slope of the supply of labor curve is due to the fact that as wages increase, individuals are willing to supply more labor because the opportunity cost of leisure (the enjoyment or utility someone gives up by not taking leisure time) increases. In other words, individuals are willing to give up more leisure time in order to work and earn a higher wage.

The Supply of Labor Curve Slopes Upward Because, with a Higher