The backward bend in the individuals labor supply curve is due too

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    the income effect of the higher wage: The worker is able to purchase more leisure, and work fewer hours, at higher wage levels.
     the substitution effect of the higher wage which encourages the worker to work more hours.
     higher level of injuries that occur at higher wages and increased work time: Workers eventually become injured as they are enticed by higher wages to work more and so must then cut back on hours worked.
     All of the above.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the income effect of the higher wage: The worker is able to purchase more leisure, and work fewer hours, at higher wage levels.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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