How is a labor supply schedule derived? a)rotating a wage constraint over a set of indifference...
How is a labor supply schedule derived?
a)rotating a wage constraint over a set of indifference curves
b)shifting a wage constraint up and down over a set of indifference curves,
c)Shifting the wage constraint and rotating the indifference curves
d) shifting a set of indifference curves up and down over a wage constraint
e) rotating indifference curves over a wage constraint.
Homework Answers
Solution: shifting a wage constraint up and down over a set of indifference curves
Explanation: The labor supply curve is based on the concept that when the wages increase, there will be a rise in the opportunity cost of leisure, causing people to work more hours
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