In an upward-sloping section of a labor supply curve,________.
A) a change in the wage rate results in the quantity of labor supplied changing in the same direction
B) a change in the wage rate results in the quantity of labor supplied changing in the opposite direction
C) a change in the wage rate does not result in any change in the quantity of labor supplied
D) the wage rate does not change as the quantity of labor supplied changes

Question

Quizplus · Accepted Answer

In an upward-sloping section of a labor supply curve, a change in the wage rate results in the quantity of labor supplied changing in the same direction. This means that as the wage rate increases, the quantity of labor supplied also increases, and as the wage rate decreases, the quantity of labor supplied decreases. This is because workers are more willing to supply labor at higher wage rates, as it becomes more profitable for them to do so.

In an Upward-Sloping Section of a Labor Supply Curve,________