If Ernie's individual labor supply curve is upward sloping, then Ernie responds to an increase in the
A)wage by working more hours per week.
B)opportunity cost of leisure by working fewer hours per week.
C)opportunity cost of leisure by taking more hours of leisure per week.
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

If Ernie's individual labor supply curve is upward sloping, it means that Ernie is willing to work more hours at a higher wage rate, indicating a positive relationship between wage and labor supply. Therefore, Ernie responds to an increase in the wage by working more hours per week.

If Ernie's Individual Labor Supply Curve Is Upward Sloping, Then