Question

Suppose when you are offered $7.00 per hour to work in the campus library, you choose not to work, but when you are offered $10.00 per hour, you accept a part-time position. Your behavior can best be explained by the fact that your supply of labor curve is:

1. horizontal
2. vertical3. upward-sloping
4. downward-sloping

Answer 1

Upward Sloping

Step-by-step explanation:

Labour Supply is the supply of working hours by workers towards an enterprise.

The Labour Supply Curve is upward sloping (upto an extent - then backward bending). Considering the general upward sloping labour supply curve : it implies that workers tend to supply more labour services / hours at higher wages, less labour services /hours at lower wages.

This case of me rejecting a library job offer at lower wages i.e $7, but accepting part time job at higher wages i.e $10 illustrates the Labour Wage - Supply direct relationship perfectly .