6. Plotting the supply of labor In Lexington, 90 people are willing to spend an hour working as pizza makers for an hourly wage of $10. For each additional $5 that the wage increases above $10, an additional 30 people are willing to spend an hour working. For hourly wages of $10, $15, $20, $25, and $30, plot the daily labor supply curve for pizza makers on the following graph. WAGE (Dollars per hour) 50 45 40 35 30 25 20 15 10 5 0 0 30 60 90 120 150 180 210 LABOR (Number of workers) 240 270 300 Supply ?
6. Plotting the supply of labor In Lexington, 90 people are willing to spend an hour working as pizza makers for an hourly wage of $10. For each additional $5 that the wage increases above $10, an additional 30 people are willing to spend an hour working. For hourly wages of $10, $15, $20, $25, and $30, plot the daily labor supply curve for pizza makers on the following graph. WAGE (Dollars per hour) 50 45 40 35 30 25 20 15 10 5 0 0 30 60 90 120 150 180 210 LABOR (Number of workers) 240 270 300 Supply ?
Chapter12: Labor Markets And Labor Unions
Section: Chapter Questions
Problem 1.1P
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Transcribed Image Text:6. Plotting the supply of labor
In Lexington, 90 people are willing to spend an hour working as pizza makers for an hourly wage of $10. For each additional $5 that the wage
increases above $10, an additional 30 people are willing to spend an hour working.
For hourly wages of $10, $15, $20, $25, and $30, plot the daily labor supply curve for pizza makers on the following graph.
WAGE (Dollars per hour)
50
45
40
35
30
25
20
15
10
5
0
0
30
60
90 120 150 180 210
LABOR (Number of workers)
240 270 300
Supply
?
Transcribed Image Text:What is one explanation for why this labor supply curve is upward sloping?
Firms are willing to hire fewer pizza makers at a higher wage.
The opportunity cost of leisure increases as wages increase.
People prefer to spend time doing leisure activities rather than working.
Unemployment benefits are steadily declining.
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