Labor Supply

Labor supply refers to the total number of hours that workers are willing and able to work at various wage levels. It is influenced by factors like income needs, alternative opportunities, and individual preferences for work-life balance. Generally, as wages increase, more workers are inclined to supply their labor, leading to a greater total available workforce. Conversely, if wages are low, some may choose not to work or work fewer hours. Understanding labor supply helps economists analyze employment trends, wage levels, and the overall functioning of the economy.