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Thought: For an individual, labor supply curve is not monotonic up and to the right, it’s a U-shape. If you have minimum living costs, you’ll sell more time to hit your minimum. But once you can make minimum with less than 100% time, leisure is substitute demand so curvecrises
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Ok better diagram. Given U-shaped supply, a flattish demand curve will intersect at 2 points and you might even work more hours at lower pay because you prefer it to leisure, thereby possibly making more than your minimum and enjoying it
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Modeling your supply curve is just as hard as modeling your demand curve. With demand, you lack data. With supply you lack self-knowledge. Would I be willing to sell all my time at $1000/hour? $2000/hour? Can’t answer without knowing what you’re asking me to actually sell.
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The higher the price, the more of your waking hours you should be willing to sell, up to biological sustainability for that type of work. But past a point you will want to sell less, because it’s deal with a devil, indecent proposal etc.
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