Picture Styles Arrange D) Her substitution effect is twice the rate of her incom
ID: 1138121 • Letter: P
Question
Picture Styles Arrange D) Her substitution effect is twice the rate of her income effect. Question 11 0/ 1 point The Labor Supply Curve shows how the quantity supplied of labor varies directly with the real wage rate. What happens when the real wage rate rises? A) The supply of labor increases (labor supply curve shifts to the right). B) The supply of labor falls (the entire labor supply curve shifts to the left). C) The supply of labor becomes vertical. D) The quantity supplied of labor increases Question 12 0/1 point What happens to the supply of labor when the difficulty of a particular job reduces and its status rises in society e A) The quantity supplied of labor increases to the new price B) The quantity supplied of labor falls to the new price C) The supply of labor increases, which means the labor supply curve shifts to the right D) The labor supply curve shifts to the left ited States)Explanation / Answer
Question 11
Labor suply curve shows that the quantity of labor varies directly with the real wage rate.
This direct variation implies that if real wage rate increases the quantity of labor supplied also increase and if real wage rate decreases then quantity of labor supplied also decreases.
So, when the real wage rate rises, the quantity supplied of labor increases.
In such scenario, there would be no impact on position of labor supply curve. In other words, labor supply curve would not shift. There will be an upward movement along the labor supply curve.
Hence, the correct answer is the option (D).
Question 12
When the difficulty of a particular job reduces and its status rises in society then more people enter the market for such job.
This leads to increase in supply of labor in such market and shifts the labor supply curve to the right.
Thus,
The supply of labor increases, which means the labor supply curve shifts to the right.
Hence, the correct answer is the option (C).