In Dallas, 150 people are willing to work an hour as secretaries if the wage is $15 per hour. For each additional $5 that the wage rises above $15, an additional 50 people are willing to work an hour. For wages of $15, $20, $25, $30, and $35 per hour, plot the daily labor supply curve for secretaries on the following graph WAGE (Dollars per hour) 45 40 RRRR# 20 15 10 S 50 100 150 200 250 300 350 400 450 LABOR (Number of workers) -9- Supply What is one explanation for why this labor supply curve is upward sloping over the range of wages from low wage to high wage? The opportunity cost of leisure decreases as wages decrease. People prefer to spend time doing leisure activities rather then working Labor production functions exhibit diminishing marginal returns. Unemployment benefits are steadily declining.
In Dallas, 150 people are willing to work an hour as secretaries if the wage is $15 per hour. For each additional $5 that the wage rises above $15, an additional 50 people are willing to work an hour. For wages of $15, $20, $25, $30, and $35 per hour, plot the daily labor supply curve for secretaries on the following graph WAGE (Dollars per hour) 45 40 RRRR# 20 15 10 S 50 100 150 200 250 300 350 400 450 LABOR (Number of workers) -9- Supply What is one explanation for why this labor supply curve is upward sloping over the range of wages from low wage to high wage? The opportunity cost of leisure decreases as wages decrease. People prefer to spend time doing leisure activities rather then working Labor production functions exhibit diminishing marginal returns. Unemployment benefits are steadily declining.
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 13P
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