Question

Which of the following events can cause the labor-supply curve to shift?

a. an increase in the wage rate

b. an increase in the price of output

c. an increase in the rate of immigration

d. a technological advance

Please explain in detail the answer

Answer 1

Option C.

• The shift in the supply curve means that people are more responsive to an increase in the wages and are willing to devote most of the time for working and enjoy less leisure.
• The events that shift the labor supply curve include changes in tastes, immigration, better alternate opportunities.
• When the number of immigrants come into a country, then the country's supply of labour increases which shifts the labor supply curve to the right.