Answer to Question #48766 in Microeconomics for Ava G

Question

True or False???
Labour supply may be “backward-bending” (higher wages leading to less labour supplied) only if leisure is an inferior good.

Answer 1

In economics, a backward-bending supply curve of labour or backward-bending labour supply curve is a graphical device showing a situation in which, as "real" or inflation-corrected wages increase beyond a certain level, people will substitute leisure (non-paid time) for paid work-time and thus higher wages lead to less labor-time being offered for sale.
But if leisure is an inferior good, people will not substitute leisure (non-paid time) for paid work-time.
So, the statement is false.