The Table below relates to the supply of labour in response to the given wage rates Use the information in the table to answer the questions that follow . W...

The three columns are linked by \( \text{Income per day} = \text{Wage rate} \times \text{Hours worked} \). We rearrange this to fill the gaps.

(a) Hours worked \( = \dfrac{\text{Income}}{\text{Wage rate}} \):

• (i) At \$10 per hour: \( 10 \div 10 = 1 \) hour.
• (ii) At \$20 per hour: \( 60 \div 20 = 3 \) hours.
• (iii) At \$30 per hour: \( 150 \div 30 = 5 \) hours.

(b) Income per day \( = \text{Wage rate} \times \text{Hours} \):

• (i) At \$40: \( 40 \times 6 = \$240 \).
• (ii) At \$50: \( 50 \times 4 = \$200 \).
• (iii) At \$60: \( 60 \times 3 = \$180 \).

Completed table

(c)(i) The wage rate of \$40 per hour attracts the highest earnings, \$240 per day.

(c)(ii) The data give a backward-bending (regressive) supply curve of labour.

(c)(iii) Up to \$40 per hour, higher wages induce the worker to offer more hours (1, 3, 5, 6), so supply slopes upward. Beyond \$40, further wage increases cause hours to fall (6, 4, 3): the worker now feels rich enough to buy more leisure, so the income effect outweighs the substitution effect and the curve bends backward on itself.