2. Plotting the supply of labor In Miami, 160 people are willing to work an hour as secretaries if the wage is $5 per hour. For each additional $5 that the wage rises above $5, an additional 40 people are willing to work an hour. For wages of $5, $10, $15, $20, and $25 per hour, plot the daily labor supply curve for secretaries on the following graph 2 8 40 Supply 30 WAGE (Dolars per hour 20 10 0 0 40 330 300 00 120 100 100 2000 LAHOR (Number of work) 0 35 30 WAGE (Dollars per hour) 25 20 15 10 5 0 0 40 80 320 360 400 120 160 200 240 200 LABOR (Number of workers) What is one explanation for why this tabor supply curve is upward sloping over the range of wages from low wage to high wage? The opportunity cost of leisure increases as wages increase People prefer to spend time doing leisure activities rather than working Labor production functions exhibit diminishing marginal returns. Firms are willing to hire fewer secretaries at a higher wage