-Peyton is a personal trainer and works at several gyms in her neighborhood.Peyton's labor supply curve is shown above.Which of the following statements is true regarding Peyton's labor supply?
i.Peyton is willing to supply more labor and give up leisure at wages between $50 and $75 per hour.
ii.Peyton will not work for less than $30 per hour.
iii.If the wage increases higher than $75 per hour,Peyton will choose to take more leisure.
A) i, ii and iii.
B) ii only.
C) iii only.
D) i and ii.
E) ii and iii.

Question

-Peyton is a personal trainer and works at several gyms in her neighborhood.Peyton's labor supply curve is shown above.Which of the following statements is true regarding Peyton's labor supply?
i.Peyton is willing to supply more labor and give up leisure at wages between $50 and $75 per hour.
ii.Peyton will not work for less than $30 per hour.
iii.If the wage increases higher than $75 per hour,Peyton will choose to take more leisure.
A) i, ii and iii. 
B) ii only. 
C) iii only. 
D) i and ii. 
E) ii and iii.

Quizplus · Accepted Answer

A labor supply curve typically shows the relationship between the wage rate and the quantity of labor supplied. Statement i is true because, in general, as wages increase within certain ranges, workers are willing to supply more labor in exchange for leisure. Statement ii is accurate because there is usually a minimum wage rate below which workers are not willing to work, indicating their reservation wage. Statement iii reflects the backward-bending supply curve of labor, where beyond a certain wage level, individuals may prefer more leisure over additional income, thus supplying less labor.

-Peyton Is a Personal Trainer and Works at Several Gyms