19.2 Labor Markets
MyEconLab Concept Video
For most of us, a labor market is our only source of income. We work and earn a wage. What determines the amount of labor that we supply?
The Supply of Labor
People supply labor to earn an income. Many factors influence the quantity of labor that a person plans to provide, but a key factor is the wage rate.
Larry works as a car washer, but he enjoys his leisure time.
To see how the wage rate influences the quantity of labor supplied, think about Larry’s labor supply decision, which Figure 19.3 illustrates. Larry enjoys his leisure time, and he would be pleased if he didn’t have to spend his evenings ...
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