(Solved): 6. Plotting the supply of labor In Montgomery, 135 people are willing to spend an hour working as pi ...

In Montgomery, 135 people are willing to spend an hour working as pizza makers for an hourly wage of $$\$20$$. For each additional $$\$5$$ that the wage increases above $$\$20$$, an additional 45 people are willing to spend an hour working. For hourly wages of $$\$20,\$25,\$30,\$35$$, and $$\$40$$, plot the daily labor supply curve for pizza makers on the following graph. What is one explanation for why this labor supply curve is upward sloping? People prefer to spend time doing leisure activities rather than working. Unemployment benefits are steadily declining. Labor production functions exhibit diminishing marginal returns. The opportunity cost of leisure increases as wages increase.