Question: 1 1 . The backward - sloping labor supply curve Mylah has 8 0 hours per week that she can devote to time spent working
The backwardsloping labor supply curve
Mylah has hours per week that she can devote to time spent working or on leboure activilies. Assume that Mylah is paid by the hour, and that her job mill always aliom her to work ias many hours as she chooses.
The following graph presents Hylath's weesly leisurvifoome tradsoff. The three lines labeled mathrmBCmathrmBC and mathrmBC show her time allocation budget at three differert hourly wage levels. The given points A B and C represent her optimal time aliscation choices alofig each of these coratraints. Mylah mil spend en labor and iwhore.
graph, shoming how much Gober she supplies dach wink at aach of the three wapus.
Suppose that Mylah's initial budpet line was BC and that is then changed to BC; therefore, Nylah's optimal time aliscation chaice sififted from B to C As a result of this change, Mylatr's opportunicy cost of leburi r and she chese to coforiume beisure. Cofsequentily, in this region, the r effect dominates the effect. The corresponding portion of Myiah's labor supply curve is
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