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Figure: Joanna's Time Allocation Budget Line
-(Figure: Joanna's Time Allocation Budget Line)The figure Joanna's Time Allocation Budget Line depicts what happens when she can choose how to spend 40 hours.If Joanna's wage increases and as a result she consumes LESS leisure,her supply curve of labour is:
A) horizontal.
B) upward-sloping.
C) downward-sloping.
D) vertical.

Question

Use the following to answer questions :
Figure: Joanna's Time Allocation Budget Line 
-(Figure: Joanna's Time Allocation Budget Line)The figure Joanna's Time Allocation Budget Line depicts what happens when she can choose how to spend 40 hours.If Joanna's wage increases and as a result she consumes LESS leisure,her supply curve of labour is:
A) horizontal. 
B) upward-sloping. 
C) downward-sloping. 
D) vertical.

Quizplus · Accepted Answer

When Joanna's wage increases and she consumes less leisure, it indicates that she is willing to work more hours as the wage rate increases, which is characteristic of an upward-sloping labor supply curve.

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