The cost of living has increased in the town of Snowdale. The labor supply curve in Snowdale will?

Question

get kinked.
not be affected.
become horizontal.
shift outward.
shift inward.

Answer 1

It will shift inward. Here is why. As the cost of living increases, things become more expensive. Individuals will want to make more in order to maintain their current standard of living. Thus, they will demand higher wages in order to supply their labor. This translates to a shift inward in the supply curve, which means that for each quantity previously supplied, a higher price will now be demanded. Thus, supply will contract, meaning that at current prices, fewer people will be willing to work. This will likely be counteracted in part by an increase in the demand for labor, as a higher cost of living means that prices of products are higher, translating to higher profits for companies. Thus, they will want to increase output, which will increase demand for labor.

Answer 2

Yup, the labor supply curve would indeed shift to the left (inward). Im not gonna elaborate on it bcs TheEconomicsGuy did a good job expaining it already. Just felt the need to give u one more answer on it, seeing that u get different opinions here.

Answer 3

Shift to the right (outward) on a graph.

Answer 4

improve