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The supply curve of individual labor is backward bending but the market supply of labor is upward sloping because_______.
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44 votes
The supply curve of individual labor is backward bending but the market supply of labor is upward sloping because_______.

User David Steiman
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1 Answer

21 votes
21 votes

Answer:

More leisure time is purchased

Step-by-step explanation:

As workers receive higher wages, their consumption of all goods will increase because higher wages will lead to those workers having more income. Part of their consumption of all goods is leisure time. While not a actual product, they will "purchase" more leisure time, so their hours worked goes back, which is why the curve bends back as the wage rate is increased.

User Benjchristensen
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