(Answered) By definition, a labor supply curve cannot have a negative slope.By definition, a labor supply…

➤ How do substitution and income effects determine the slope of labor supply?
You analyze slope using substitution and income effects around a wage change. The substitution effect raises labor supply when wages increase; the income effect reduces it if workers value leisure. Use indifference curves and budget constraints to derive local slopes and identify points where income dominates, causing a backward bend in an individual’s labor supply.