Question

​Uber, the​ ride-hailing service, increases the price of a ride when demand​ increases, as​ happens, for​ instance, on New​ Year's Eve or during a snowstorm. An article in the New York Times discussed how new Uber drivers respond to fluctuations in the wages they​ earn: "Many of these drivers appeared to have an income goal in mind and stopped when they were near​ it, causing them to knock off sooner when their hourly wage was high and to work longer when their wage was​ low."

Answer 1

On the basis of this information, the labour supply curve for new Uber drivers is backward sloping.

Step-by-step explanation:

In economics, a backward-bending supply curve of labour, or backward-bending labour supply curve, is a graphical device showing a situation in which as real (inflation-corrected) wages increase beyond a certain level, people will substitute leisure (non-paid time) for paid work-time and so higher wages lead to a decrease in the labour supply and so less labour-time being offered for sale.

The number of work hours increases till wage rate, say W1. After the wage rate W1, they decrease the hours of work. So, the labour supply curve is backward sloping.