The individual labor supply curve is considered backward bending because of the relationship between wages and the quantity of labor supplied by an individual. At low wage levels, as wages increase, individuals are willing to supply more labor, leading to a positive slope in the labor supply curve. This is because higher wages provide an incentive to work more hours to maximize income.
However, beyond a certain point, as wages continue to rise, individuals may choose to work fewer hours. This occurs because the opportunity cost of leisure time becomes more significant. Higher wages allow individuals to afford more leisure time, as they can maintain their desired income with fewer hours worked. Thus, the curve bends backward at higher wage levels.
In summary, the backward bending labor supply curve illustrates how individuals react to wage changes: up to a certain wage level, they supply more labor, but beyond that level, they might prefer to enjoy more leisure, resulting in a decrease in the labor supplied.