Question

The supply of labor to an industry will decrease when Question 7 options: the demand for labor falls in the industry. the income effect dominates the substitution effect. workers receive better employment opportunities in other industries. the price of leisure falls.

Answer 1

Answer: Answer: "The supply of labor to an industry will decrease when workers receive better employment opportunities in other industries."

Explanation: The determinants of the supply of labor are:

Other wages: If the salary of other occupations increases, the offer of this type of work comes down.

Non-salary income: If these incomes increase, the supply of labor goes down.

Preferences for work versus leisure: If preferences increase, the

supply of labor increases.

Non-wage aspects of employment: If these aspects improve, the

supply of labor increases.

Number of bidders : If there is an increase in number of workers, the supply of labor increases.