An individual\'s labor supply curve is (upward sloping from left to right first

Question

An individual's labor supply curve is (upward sloping from left to right first and then) backward bending, primarily because, as wage rate goes up, the labor (the individual) will start------- a. experiencing smaller substitution effect and greater preference for leisure which is supposed to be a normal good b. experiencing smaller preference for leisure c. recognizing that Unemployment is not preferred even at the high wage rate d. recognizing that sometimes there is no rationality in labor decisions

Explanation / Answer

Ans:  An individual's labor supply curve is (upward sloping from left to right first and then) backward bending, primarily because, as wage rate goes up, the labor (the individual) will start- a. experiencing smaller substitution effect and greater preference for leisure which is supposed to be a normal good .

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