What Is the Shape of the Labour Supply Curve Implied

question 53

Short Answer

What is the shape of the labour supply curve implied by the following statements?
a.'I'm sorry, kids, but now that I'm earning more, I just can't afford to come home early in the afternoon, so I won't be here when you get home from school.'
b.'They can pay me a lot or they can pay me a little.I'll still put in my 8 hours a day.'
c.'Now that I have received a salary increase, I am going to work 36 hours instead of 40 hours a week'
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Definitions:

Moral Hazard

The situation where one party is likely to take risks because the negative consequences of the risk will be borne by another party.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire, providing financial protection to property owners.

Random Variable

A variable whose values depend on outcomes of a probabilistic phenomenon, often used in statistics and probability theory.

Future Price

The predicted price of a commodity, security, or currency in a futures contract for delivery and payment at a specified future date.