Individual labour supply curve is ____________.

The correct answer is option 2: Backward bending

The individual labor supply curve typically exhibits a backward-bending shape due to the trade-off between work (income) and leisure:

1. At lower wage levels, as wages increase, individuals work more hours because the higher wage makes work more attractive. This makes the labor supply curve upward sloping initially.
2. At higher wage levels, individuals may choose to work fewer hours because they can maintain the same income while enjoying more leisure time. This causes the labor supply curve to bend backward.