Use the Following to Answer Questions

question 38

Multiple Choice

Use the following to answer questions :
Figure: Davina's Labour Supply Choice
-(Figure: Davina's Labour Supply Choice) The figure Davina's Labour Supply Choice shows Davina's time allocation budget line when her hourly wage is $10 or $15 and she has 80 hours to allocate between labour and leisure;it also shows two of her indifference curves for income and leisure.Davina's labour supply curve is _____ as her hourly wage rises from $10 to $15.

• A) upward-sloping
• B) downward-sloping
• C) vertical
• D) horizontal

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Definitions:

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