Explain with reasons, whether you agree or disagree with the following statement
The supply curve of labour bends backwards
Yes, we agree with the statement that the supply curve of labour is backward bending. Labour supply curve represents the labour supplied at different wage rates and it is a backward bending curve. The backward bending portion of labour supply curve shows an inverse relationship between the supply of labour and the wage rate. Initially, as the wage rate increases the worker prefers work to leisure. Thereby, the labour supply curve slopes upward. However, as the wage rate continues to rise, beyond a point, the workers start preferring leisure to work. Accordingly, beyond this, the labour supply curve bends backwards.
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