Figure 21-27
-Refer to Figure 21-27. Anna experiences an increase in her hourly wage. Her optimal choice point moves from A to B. For Anna,
A)her labor supply curve is backward bending.
B)her labor supply curve is upward sloping.
C)leisure is an inferior good.
D)both a and c are correct.

Question

Figure 21-27 
-Refer to Figure 21-27. Anna experiences an increase in her hourly wage. Her optimal choice point moves from A to B. For Anna,
A)her labor supply curve is backward bending. 
B)her labor supply curve is upward sloping. 
C)leisure is an inferior good. 
D)both a and c are correct.

Quizplus · Accepted Answer

Anna's optimal choice point moving from A to B indicates that her labor supply curve is backward bending.

Figure 21-27 -Refer to Figure 21-27. Anna Experiences an Increase in Her