Calculating the price elasticity of supply Janet is a graduate student living in San Francisco who works as a caddy to supplement their normal income. At an hourly wage rate of $40, they are willing to caddy 9 hours per week. Upping the wage to $55 per hour, they are willing to caddy 17 hours per week. Using the midpoint method, the elasticity of Janet’s labor supply between the wages of $40 and $55 per hour is approximately , which means that Janet’s supply of labor over this wage range is .
Calculating the price elasticity of supply Janet is a graduate student living in San Francisco who works as a caddy to supplement their normal income. At an hourly wage rate of $40, they are willing to caddy 9 hours per week. Upping the wage to $55 per hour, they are willing to caddy 17 hours per week. Using the midpoint method, the elasticity of Janet’s labor supply between the wages of $40 and $55 per hour is approximately , which means that Janet’s supply of labor over this wage range is .
Chapter1: Making Economics Decisions
Section: Chapter Questions
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