Higher wages lead to decreased labor supply, impacting economy.
The article discusses how changes in the price of a product affect the demand and supply for it. It questions the traditional economic law that states higher prices lead to lower demand. The researchers suggest that individual choices don't always translate to overall economic patterns. They propose a new model with many small consumers instead of one big market. By analyzing UK data, they find that as wages increase, people tend to work less, supporting the idea of a downward sloping labor supply curve.