backward-bending supply curve

backward-bending supply curve definition - business

backward-bending supply curve

A curved line that depicts an unusual situation in which the supply of a good or service begins declining once price has reached a certain level. This is most frequently applied to labor on the theory that at some wage level the suppliers of labor will begin substituting leisure for work. For example, a person earning $100 per hour may already be earning enough to buy everything that is desired and decide to work fewer hours.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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