Author Question: A consumer's budget line will rotate outward along the horizontal axis if: a. the price of the good ... (Read 49 times)

iveyjurea · **on:** Jun 30, 2018

A consumer's budget line will rotate outward along the horizontal axis if:
a. the price of the good on the horizontal axis decreases.
b. the price of the good on the vertical axis increases.
c. the price of the good on the horizontal axis increases.
d. the consumer's income decreases.

Question 2

Why is the market supply curve of labor positively sloped though individual supply curves are backward-bending beyond a certain wage rate?
a. People tend to work less when wage rate increases.
b. Every individual laborer has equal trade offs between labor and leisure.
c. People tend to substitute labor for leisure.
d. People work more for the fear of losing their jobs and becoming unemployed.
e. All the individual supply curves do not bend backward at one particular wage rate.