An upward-sloping labor-supply curve implies that an increase in the wage induces
A)firms to increase the quantity of labor they hire.
B)firms to increase the quantity of output they produce.
C)workers to decrease the quantity of leisure they enjoy.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

An upward-sloping labor-supply curve implies that as the wage rate increases, workers are willing to work more hours and enjoy less leisure time. Therefore, the quantity of labor supplied increases. This does not directly affect the quantity of output produced or the quantity of labor hired by firms.

An Upward-Sloping Labor-Supply Curve Implies That an Increase in the Wage