Suppose the labor supply curve shifts upward.Which of the following could have caused the shift?
A) The wage in an alternative industry increased.
B) The price of capital increased,and capital and labor are gross complements.
C) The price of capital decreased,and capital and labor are gross complements.
D) A hurricane caused thousands of people to leave New Orleans,decreasing the size of the labor force in the area.
E) none of the above

Question

Quizplus · Accepted Answer

If the wage in an alternative industry increased, workers may choose to work in that industry instead, causing a decrease in the labor supply for the original industry and an upward shift in the labor supply curve. The other options do not directly affect the labor supply curve.

Suppose the Labor Supply Curve Shifts Upward