Question

An individual worker wants to increase his money income with the increase in money wage rate pre-week but prefers leisure to income when the money wage rate increases further. What would be the shape of labour supply curve for this individual worker?

Answer 1

The Supply Curve of Labor of any specific occupation is backward bending curve. It implies that when wage rate increases, workers substitute leisure hours for more work to which the supply of labor increases, hence representing the upward sloping of the curve