EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 14, Problem 4QR
To determine
Describe the backward bending labor supply curve.
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Students have asked these similar questions
if leisure is an inferior good, what can you say about the slope of the labor supply curve?
What is a real life example of what is
happening at the 'cross' of the 'X', or where
the labor demand and labor supply curves
intersect.
Trying to understand this more clearly with
a real example.
Bob White argues that if his wage went up from $10/hour to $20/hour he would still be able to pay rent and feed his family even if he
worked half as many hours. So, if his wage increased he would want to work proportionally less.
What is strange about Bob White's labor supply curve?
it is very elastic
it is very inelastic
it slopes down
it is vertical
Chapter 14 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- why does a simple market demand for labor curve and a simple market supply of labor curve seem to form the letter 'X' .arrow_forwardWhy might a labor supply curve be backward bending? Explain your answer using the concepts of the income effect and the substitution effect. (You can explain your answer using words or you can draw a graph accompanied with a brief explanation)arrow_forwardWhat is meant by an inferior factor of production? How would the firm’s demand for labour be altered if labour were an inferior factor of production?arrow_forward
- Use a diagram to thoroughly explain the backward bending labor supply curve and explain what income and substitution effects are.arrow_forwardSuppose the firm only produces good X and that the price of good Y, a substitutegood, decreases. What will happen to the optimal quantity of labor the firm willhire? Explain.arrow_forwardHow do wages affect labor supply?arrow_forward
- You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. You develop a popular video game and continue to develop new versions to keep people interested in the game.arrow_forwardWhy is the short-run demand curve for labor downward sloping?arrow_forward“The firm’s demand schedule for labour is a negative function of the wage because, as the firm uses more labour, it has to utilize poorer-quality labour, and hence pays a lower wage.” True or false? Explain.arrow_forward
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