Respuesta :
The labor supply curve moves upwards if the wage of insurance agents increases.
What is a labor supply curve?
- A person's labor supply curve indicates how many hours they are willing to work for different wages, just as a seller's supply curve indicates how much they are willing to sell for different prices.
- Because of the projected overwhelming effect of the substitution effect over the income effect of a rise in the real wage, the labor supply curve slopes higher and to the right.
- Because of diminishing marginal returns to labor given fixed capital stock, the labor demand curve slopes downward.
Upward sloping labor supply curve:
- With upward-sloping labor supply curves, enterprises that want to increase their employee count must raise salary offers for both new and existing workers.
- As a result, the marginal labor expense surpasses the compensation paid to the additional workers.
Therefore, the labor supply curve moves upwards if the wage of insurance agents increases.
Know more about the supply curve here:
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