The top graph below shows David’s preferences for leisure and consumption. In the bottom graph, "Supply of Labor," draw David’s Labor Supply curve based on your answers from the top graph.

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Chapter1: Making Economics Decisions
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The top graph below shows David’s preferences for leisure and consumption.

In the bottom graph, "Supply of Labor," draw David’s Labor Supply curve based on your answers from the top graph.

 

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A labor supply curve is the locus of all points representing the various number of hours of labor services supplied by workers at different wage rates in the labor market. It is an upward sloping curve that represents a positive relationship between labor hours supplied and the wage rate.

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