While Individual Labour Supply Curves May Bend Backward,market Labour Supply

question 4

True/False

While individual labour supply curves may bend backward,market labour supply curves are likely to be upward-sloping throughout,since higher wages induce new workers to enter the labour market.

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay and the actual price they do pay.

Consumer Surplus

The economic benefit enjoyed by consumers when they pay less for a product than what they were prepared to pay.

Producer Surplus

The financial gap between the price sellers are willing to accept for goods or services and the price they eventually get.

Price Floor

A legal minimum on the price at which a good can be sold.