Suppose the hourly wage for our consumer increased from W to W'. If our consumer has preferences consistent with the indifference curves shown to the right then her labor supply curve is upward sloping, at least within this wage range.

    Due to the increase from W to W' she increases the desired number of hourse of labor supplied from 50 to 55 and reduces her leisure time from 30 to 25. For this consumer the income effect of a wage change dominates.


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