3. Using a separate graph for each change, show the effects of the following changes on the market labor supply curve. a. a decrease in the wage rate b. an increase in the opportunity cost of time spent working c. a decrease in the marginal product of labor

3. Using a separate graph for each change, show the effects of the following changes on the market labor supply curve. a. a decrease in the wage rate b. an increase in the opportunity cost of time spent working c. a decrease in the marginal product of labor

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 1PA

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Question

3. Using a separate graph for each change, show the effects of the following changes on
the market labor supply curve.
a. a decrease in the wage rate
b. an increase in the opportunity cost of time spent working
c. a decrease in the marginal product of labor
PROBLEMS FOR REVIEW
d. an increase in the number of workers

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