WAEC - Economics (2018 - No. 11)
the backward bending supply curve of labour indicates?
an abnormal supply situation
the law of supply
that labour supply and wage are directly related
that the elasticity of supply is uniform
Explicação
The reason is that there are two effects related to determining supply. The substitution effect states that a higher wage makes work more attractive than leisure. ... The income effect states that a higher wage means workers can achieve a target income by working fewer hours.
Backward bending supply curve is the normal case for most workers. Most economists agree that a worker's supply curve for labor slopes upward at lower wages and bends backward at higher wages.