A leftward shift in the labor supply curve would result if:
A) people value leisure more highly.
B) people have less nonlabor income.
C) transit costs to and from work decline.
D) the population increases.

Question

Quizplus · Accepted Answer

A leftward shift in the labor supply curve would occur if people begin to value leisure more highly, which decreases the amount of time they are willing to work. This would result in a decrease in the quantity of labor supplied at each wage level, leading to a leftward shift in the labor supply curve. B, C, and D are not correct because they do not result in a change in the willingness of individuals to work, which is what the labor supply curve measures.

A Leftward Shift in the Labor Supply Curve Would Result