Principles of Microeconomics / Unit 3 MIC 0207 short lesson, about 20 seconds
Work, Leisure and the Backward Bend
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The idea
The wage is the price of leisure. A higher wage makes leisure dearer, so workers substitute toward work; it also raises income, and richer workers buy more leisure.
In practice
Past some wage the second effect wins and the supply curve bends back.
Where people slip
Market supply still slopes up, since a higher wage pulls workers from other occupations; unit five names the two effects.
Your place on the trail
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