Do you agree or disagree with the following statements? Give reasons. The backward slopping supply curve shown as inverse relationship between supply of labour and wage rate.

Do you agree or disagree with the following statements? Give reasons.

The backward slopping supply curve shown as inverse relationship between supply of labour and wage rate.

Answer: Yes, the above statement is true. The backward bending portion of labour supply curve shows an inverse relationship between the supply of labour and the wage rate. Beyond a particular wage rate, the workers start preferring leisure to work. Accordingly, as the wage rate increases they are willing to supply less labour. 

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