Explain the shape of individual supply curve of labor and for the market supply curve.

Question

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Answer 1

Question

Chapter 11, Problem 1QP

To determine

Explain the shape of individual supply curve of labor and for the market supply curve.

Expert Solution & Answer

Explanation of Solution

In a market, the individuals make a trade-off between labor and leisure. In this case, if wage rate increases, the substitution effect dominates and workers substitute work for leisure. If wage increases to higher level, then the additional income is less important because these high wages yield with less work. Here, income effect dominates and leads to workers substituting leisure for work. Thus, the supply curve bends backward.

Market and industry labor supply curve are always positive slopped because if there are higher wages in one market, then it bring out supplies from other market.

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Answer 2

Question

Chapter 11, Problem 1QP

To determine

Explain the shape of individual supply curve of labor and for the market supply curve.

Expert Solution & Answer

Explanation of Solution

In a market, the individuals make a trade-off between labor and leisure. In this case, if wage rate increases, the substitution effect dominates and workers substitute work for leisure. If wage increases to higher level, then the additional income is less important because these high wages yield with less work. Here, income effect dominates and leads to workers substituting leisure for work. Thus, the supply curve bends backward.

Market and industry labor supply curve are always positive slopped because if there are higher wages in one market, then it bring out supplies from other market.

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Answer 3

Question

Chapter 11, Problem 1QP

To determine

Explain the shape of individual supply curve of labor and for the market supply curve.

Expert Solution & Answer

Explanation of Solution

In a market, the individuals make a trade-off between labor and leisure. In this case, if wage rate increases, the substitution effect dominates and workers substitute work for leisure. If wage increases to higher level, then the additional income is less important because these high wages yield with less work. Here, income effect dominates and leads to workers substituting leisure for work. Thus, the supply curve bends backward.

Market and industry labor supply curve are always positive slopped because if there are higher wages in one market, then it bring out supplies from other market.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1QP

To determine

Explain the shape of individual supply curve of labor and for the market supply curve.

Expert Solution & Answer

Explanation of Solution

In a market, the individuals make a trade-off between labor and leisure. In this case, if wage rate increases, the substitution effect dominates and workers substitute work for leisure. If wage increases to higher level, then the additional income is less important because these high wages yield with less work. Here, income effect dominates and leads to workers substituting leisure for work. Thus, the supply curve bends backward.

Market and industry labor supply curve are always positive slopped because if there are higher wages in one market, then it bring out supplies from other market.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1QP

To determine

Explain the shape of individual supply curve of labor and for the market supply curve.

Expert Solution & Answer

Explanation of Solution

In a market, the individuals make a trade-off between labor and leisure. In this case, if wage rate increases, the substitution effect dominates and workers substitute work for leisure. If wage increases to higher level, then the additional income is less important because these high wages yield with less work. Here, income effect dominates and leads to workers substituting leisure for work. Thus, the supply curve bends backward.

Market and industry labor supply curve are always positive slopped because if there are higher wages in one market, then it bring out supplies from other market.

Answer 6

Chapter 11, Problem 1QP

To determine

Explain the shape of individual supply curve of labor and for the market supply curve.

Expert Solution & Answer

Explanation of Solution

In a market, the individuals make a trade-off between labor and leisure. In this case, if wage rate increases, the substitution effect dominates and workers substitute work for leisure. If wage increases to higher level, then the additional income is less important because these high wages yield with less work. Here, income effect dominates and leads to workers substituting leisure for work. Thus, the supply curve bends backward.

Market and industry labor supply curve are always positive slopped because if there are higher wages in one market, then it bring out supplies from other market.

Answer 7

Chapter 11, Problem 1QP

To determine

Explain the shape of individual supply curve of labor and for the market supply curve.

Answer 8

Expert Solution & Answer

Explanation of Solution

In a market, the individuals make a trade-off between labor and leisure. In this case, if wage rate increases, the substitution effect dominates and workers substitute work for leisure. If wage increases to higher level, then the additional income is less important because these high wages yield with less work. Here, income effect dominates and leads to workers substituting leisure for work. Thus, the supply curve bends backward.

Market and industry labor supply curve are always positive slopped because if there are higher wages in one market, then it bring out supplies from other market.