If a worker responds to an increase in the opportunity cost of leisure by taking less leisure, then his labor supply curve is
A)horizontal.
B)vertical.
C)backward sloping.
D)upward sloping.

Question

Quizplus · Accepted Answer

When the opportunity cost of leisure increases, a worker will be incentivized to work more and take less leisure time, resulting in an upward sloping labor supply curve. This means that as the wage rate increases, the worker will supply more labor hours.

If a Worker Responds to an Increase in the Opportunity