Wendy works at a fast-food restaurant. When her wage rate was $5 per hour

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June 7th, 2024

Wendy works at a fast-food restaurant. When her wage rate was $5 per hour, she worked 30 hours per week. When her wage rate rose to $6 per hour, she decided to work 40 hours. But when her wage rate rose further to $7, she decided to work only 35 hours.a. Draw Wendy’s individual labor supply curve. b. Is Wendy’s behavior irrational, or can you find a rational explanation? Explain your answer.

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