The labour supply model can be described as the total hours a worker is willing to work given a wage rate. Within the labour supply model, the endowment that a worker has "prior" to entering the labour market is simply their time. The public policy implication of the labour supply model is multifaceted as most of us interact regularly with the labour market in order to sustain ourselves. For example, when implementing a benefit package in order to life single parents over the poverty line, and to get them to enter the labour market, the government has to decide if it would be a better incentive for them to receive a compensation for their child care cost, or if it would be better for them to receive a lump sum for the cost of childcare. As it turns out, it is better to compensate them a fraction of their child care costs in order to render it more affordable, so as to both incentivize and enable entrance into the labour market, while also maintaining that they are able to work and earn and not have all their income go towards child care - as one example. In the labour supply model, the conditions for optimality are as follows: a) MRS: w/p Where w is the equivalent of price, and p is the consumption price. and b) pc+wl=wT+m } this is just the new budget constraint for the labour supply model.