Plotting the supply of labor In Denver, 140 people are willing to work an hour as hostesses if the wage is $10 per hour. For each additional $5 that the wage rises above $10, an additional 35 people are willing to work an hour.
(For wages of $10, $15, $20, $25, and $30 per hour, plot the daily labor supply curve for hostesses on the following graph.)
What is one explanation for why this labor supply curve is upward sloping?
A. The opportunity cost of leisure increases as wages increase.
B. Labor production functions exhibit diminishing marginal returns.
C. People prefer to spend time doing leisure activities rather than working.
D. Wages have to increase to accommodate union pressure.