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# Backward Bending Supply Curve of Labor:

## Definition:

"Wages can increase to a point where less labor is offered in the market".

## Explanation:

We have stated earlier those supply curves are positively sloped. There can be sometime exceptions to the rule there is a backward bending supply curve of labor as is illustrated in the following schedule and a diagram.

### Schedule:

 Wage Rate (in Dollars) Working Hour (per day) 10 10 20 12 30 13 50 10

### Diagram/Figure:

In the figure (5.4), a labor is willing to work for 10 hours a day at a wage rate of \$10 per hour. When the wage rate increases to \$30 per hour, he puts in 13 hours of work. If wage rise to \$50, he then prefers leisure to work and is willing to work for 10 hours only. The supply curve SS/ shows that a worker puts in less labor when wage rate rises above \$30 per hour. The supply of labor then is negatively slopped and is backward bending.

The reasons of the backward bending supply curve of labor are:

(i) The substitution of leisure for work.

(ii) Increase in income which leads to rise in demand of normal commodities including leisure.

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 » Meanings of Supply » Law of Supply » Difference Between Shift in Supply Curve and Movement » Determinants of Supply » Backward Bending Supply Curve of Labor

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