aolo is a stav-at-home parent who lives in Philadelphia and provides math tutoring for extra cash. At a wage of $25 per hour, he is willing to tutor 6 hours per week. At $35 per hour, he is willing to tutor 16 hours per week. Using the midpoint method, the elasticity of Paolo's labor supply between the wages of $25 and $35 per hour is approximately _____, which means that Paolo's supply of labor over this wage range is _____. Part 1: 0.03, 0.37, 2.73, or 11 Part 2: elastic or inelastic
aolo is a stav-at-home parent who lives in Philadelphia and provides math tutoring for extra cash. At a wage of $25 per hour, he is willing to tutor 6 hours per week. At $35 per hour, he is willing to tutor 16 hours per week. Using the midpoint method, the elasticity of Paolo's labor supply between the wages of $25 and $35 per hour is approximately _____, which means that Paolo's supply of labor over this wage range is _____. Part 1: 0.03, 0.37, 2.73, or 11 Part 2: elastic or inelastic
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Paolo is a stav-at-home parent who lives in Philadelphia and provides math tutoring for extra cash.
At a wage of $25 per hour, he is willing to tutor 6 hours per week. At $35 per hour, he is willing to tutor 16 hours per week.
Using the midpoint method, the elasticity of Paolo's labor supply between the wages of $25 and $35 per hour is approximately _____, which means that Paolo's supply of labor over this wage range is _____.
Part 1: 0.03, 0.37, 2.73, or 11
Part 2: elastic or inelastic
Expert Solution
Step 1
Elasticity of supply is a measure of the responsiveness of the quantity supplied of a good or service to changes in its price, ceteris paribus. It is calculated as the percentage change in quantity supplied that is divided by the percentage change in price.
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