In order to spend more time with her children, a young mother decides to work less hours as her pay increases. What does her labor supply curve look like?

What will be an ideal response?

The young mother's labor supply curve is backward bending. In other words, her labor supply curve is positively sloped at lower wage rates, indicating that a higher wage increases the quantity of labor she supplies. But when her wage reaches a certain amount, further increases in the wage decrease the quantity of labor she supplies and her labor supply curve becomes negatively sloped.

Economics

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Why is the price elasticity of demand generally a negative number?

What will be an ideal response?

Economics

Twenty-nine countries in Europe have eliminated all tariffs with each other. This group of countries is known as the

A) Gruppo Euro. B) European Union. C) United Federation of Europe. D) European Free Trade Association.

Economics