- #1
Bipolarity
- 776
- 2
If prices increase, supply will increase. This is the Law of Supply. So if your hourly wage were suddenly increased, then according to this law, you'd be willing to work more hours because each of those hours suddenly offers you more income. Because the higher wage has made working more valuable, you decide to work more hours.
But consider this: if your hourly wage were increased, you are now able to make the same amount of money working fewer hours. You exploit this to your advantage, and decide to work fewer hours, spending the rest on leisure, since you still make the same total salary as before. This is the Law of Remuneration.
The two laws are both logical yet they contradict one another, thus they cannot be both right at the same time. Which law is correct and why?
I've been studying this for a while and it turns out that both laws are right, but at different times.
But why? What is the point at which the laws neutralize each other?
BiP
But consider this: if your hourly wage were increased, you are now able to make the same amount of money working fewer hours. You exploit this to your advantage, and decide to work fewer hours, spending the rest on leisure, since you still make the same total salary as before. This is the Law of Remuneration.
The two laws are both logical yet they contradict one another, thus they cannot be both right at the same time. Which law is correct and why?
I've been studying this for a while and it turns out that both laws are right, but at different times.
But why? What is the point at which the laws neutralize each other?
BiP
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