If an individua\'s labor supply curve slopes upward at low wages and bends backw

Question

If an individua's labor supply curve slopes upward at low wages and bends backward at high wages, is leisure a Giffen good? If so, at high or low wage rates? With such a supply curve (as illustrated in the figure to the right), leisure A. is not necessarily a Giffen good for any portion of the individual's labor O B. could be a Giffen good for the backward-bending portion of the OC. is necessarily a Giffen good for the backward-bending portion of the O D. is necessarily a Giffen good for the upward-sloping portion of the O E. is necessarily a Giffen good for all portions of the individual's labor supply supply curve. individual's labor supply curve. individual's labor supply curve. individual's labor supply curve. curve H, Work hours per day

Explanation / Answer

D is the correct option

Reason

At the upward sloping part of the curve, as conumer income rises people consume less amount of labor, this makes it a giffen good.

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