Market Supply of labor more hours are offered at higher wage rates-a positive relation Wage-Elasticity of Supply the responsiveness of labor supply to changes in the wage rate o What causes the labor supply curve to shift? Change in employment rate Change in income tax rate Changes in tastes Changes in alternative opportunities ImmigrationMarket Supply of labor • more hours are offered at higher wage rates – a positive relation • Wage-Elasticity of Supply – the responsiveness of labor supply to changes in the wage rate. • What causes the labor supply curve to shift? – Change in employment rate – Change in income tax rate – Changes in tastes – Changes in alternative opportunities – Immigration