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13 January, 08:37

Ajax Corporation has just decided to let managers work from home one day a week. This decision will

a. make working conditions better and will leave the supply curve of labor unchanged.

b. lead to an increase in the supply curve of labor for managers.

c. increase the elasticity of demand for labor for managers.

d. cause the demand curve for labor for managers to increase.

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  1. 13 January, 12:10
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    Answer: Option B

    Explanation: In simple words, increase in supply of managers refers to the condition in which the quantity of managers willing to work in certain situations increases due to change in some factors.

    As in the given case, the company is offering one day work from home facility to the employees which is beneficial for the personnel in many way as they will get extra time for their social life and will save efforts and time they invest while commuting from their residence to office.

    Hence due to this decision their utility satisfaction from the job will increase which will further lead to increase in supply of managers in the organisation.
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