The Supply of Labour

question 46

Multiple Choice

The supply of labour:

• A)is always backward bending.
• B)is the result of a maximization process.
• C)is independent of non- wage income.
• D)is the inverse of the supply of capital.

---

Definitions:

Price Elastic

Describes how sensitive the demand for a good is to changes in its price; highly elastic demand means consumers will significantly reduce buying with small price increases.

Price Inelastic

Describes a situation where the demand for a good is not very responsive to price changes, meaning consumers buy roughly the same amount regardless of price fluctuations.

Necessity

An essential good or service required for basic survival or societal functioning.

Elastic Demand

describes a market situation where the demand for a product significantly changes in response to changes in its price.