Paolo is a college student who lives in Chicago and provides math tutoring for extra cash. At a wage of $50 per hour, he is willing to tutor 7 hours per week. At $65 per hour, he is willing to tutor 10 hours per week. Using the midpoint method, the elasticity of Paolo’s labor supply between the wages of $50 and $65 per hour is approximately ........................(0.09/0.74/1.35/42.5), which means that Paolo’s supply of labor over this wage range is ..........................(elastic/inelastic).
Paolo is a college student who lives in Chicago and provides math tutoring for extra cash. At a wage of $50 per hour, he is willing to tutor 7 hours per week. At $65 per hour, he is willing to tutor 10 hours per week. Using the midpoint method, the elasticity of Paolo’s labor supply between the wages of $50 and $65 per hour is approximately ........................(0.09/0.74/1.35/42.5), which means that Paolo’s supply of labor over this wage range is ..........................(elastic/inelastic).
Chapter29: Resource Markets
Section: Chapter Questions
Problem 14E
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Paolo is a college student who lives in Chicago and provides math tutoring for extra cash. At a wage of $50 per hour, he is willing to tutor 7 hours per week. At $65 per hour, he is willing to tutor 10 hours per week.
Using the midpoint method, the elasticity of Paolo’s labor supply between the wages of $50 and $65 per hour is approximately ........................(0.09/0.74/1.35/42.5), which means that Paolo’s supply of labor over this wage range is ..........................(elastic/inelastic).
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