The backward-bending supply curve for labor shows how an increase in wages affects the number of hours worked. The “backward bend” is the part of the curve that shows that some people:
a. have no flexibility in the number of hours they work.
b. work more hours when income rises.
c. work more hours when income falls.
d. work fewer hours when income rises.
d. work fewer hours when income rises.
The very top portion of the labor supply curve is called a backward-bending supply curve for labor, which is the situation of high-wage people who can earn so much that they respond to a still-higher wage by working fewer hours.
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