Question

Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 20 hours per week in order to spend more time studying economics. For this price range, her labor supply curve is a. vertical. b. horizontal. c. upward sloping. d. backward sloping.

Answer 1

Answer:

d. backward sloping.

Step-by-step explanation:

The roommate receives a pay raise at her part-time job from $9 to $11 per hour and now decides to work 20 hours per week instead to 25 hours per week.

We can see that her rate is decreasing, so her labor supply curve is backward sloping or also called backward bending.

It is mostly found that worker's labor supply curve, slopes upward when they get lower wages and the curve bends backward when they get higher wages because a worker tends to work less when his wage rate rises.