Backward-bending supply curve of labour suggests that
A. When wage rate increases, supply of labour declines.
B. When wage rate declines, supply of labour increases.
C. There is no relationship between wage rate and labour supply.
D. When wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.
Answer:D
Backward-bending supply curve of labour suggests that
A. When wage rate increases, supply of labour declines. B. When wage rate declines, supply of labour increases. C. There is no relationship between wage rate and labour supply. D. When wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.