Refer to the information provided in Figure 13.1 below to answer the questions that follow. Figure 13.1
-Refer to Figure 13.1. If the value people put on their leisure time increases, the equilibrium wage rate

Question

Refer to the information provided in Figure 13.1 below to answer the questions that follow.  Figure 13.1
-Refer to Figure 13.1. If the value people put on their leisure time increases, the equilibrium wage rate

Quizplus · Accepted Answer

If the value people put on their leisure time increases, this means that they are willing to work less for the same wage. This will decrease the supply of labor, shifting the supply curve to the left. At the same time, the demand for labor remains the same, so the equilibrium wage rate will increase. In this case, the equilibrium wage rate could change from $9 to $15.

Refer to the Information Provided in Figure 13