wiz-icon
MyQuestionIcon
MyQuestionIcon
10
You visited us 10 times! Enjoying our articles? Unlock Full Access!
Question

"The supply curve of labour is an exception to the law of supply". Justify the statement, using a diagram.

Open in App
Solution

The supply of labour is an exception to the law of supply. Initially, the supply of labour follows the law of supply, that is, with an increase in wage rate, there is an increase in supply of labour. But beyond a certain wage rate, the labour prefers to have some relaxed hours. The workers can maintain the same standard of living by working for fewer hours at higher wages rates. As a result beyond the wage rate, the supply of labour starts falling.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Building the Supply Curve
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon