asaadasaadasaad4806 asaadasaadasaad4806
  • 17-08-2020
  • Business
contestada

When the individual labor supply curve is positively sloped, the _____ effect dominates and higher wages lead to _____ hours worked.

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topeadeniran2 topeadeniran2
  • 19-08-2020

Answer: substitution; more

Explanation:

When the individual labor supply curve is positively sloped, the substitution effect dominates and higher wages lead to more hours worked.

Labor supply has to do with the hours that workers will like to work at a particular wage rate. A higher wage will typically make workers want to spend more hours to work and therefore the substitution effect simply meams that the labour supply curve will be positively sloped.

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