In a vertical 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 a vertical section of a labor supply curve, the quantity of labor supplied remains the same regardless of changes in the wage rate. This can occur when the supply of labor is fixed and cannot be increased or decreased in the short run. Therefore, the correct choice is C, as there is no change in the quantity of labor supplied in response to a change in the wage rate.

In a Vertical Section of a Labor Supply Curve,________