Question

Becky is a stay-at-home parent who lives in Miami and teaches tennis lessons for extra cash. At a wage of $35 per hour, she is willing to teach 8 hours per week. At $40 per hour, she is willing to teach 14 hours per week.

Using the midpoint method, the elasticity of Becky’s labor supply between the wages of $35 and $40 per hour is approximately   , which means that Becky’s supply of labor over this wage range is   .

Answer 1

As wage increases from $35/hr to $40/hr the doillingness to teach increases from 8 nuweet to 1460 / week & W,= 35 2,28 02 40 La 214 Mid-Point Elasticity of Labor suppy can be given by E: (22-2,) = [12, +22) / 2] (W₂-W) = [ (W, HW 2)/2] 2 (14-8) = [ (14+8)/2] (40-35) + [(40+35)/2] E = 4.09 Elasticity of dalor supply? 4.09 Since Elasticity >t, so it is Elastic in this range The Elasticity of Becky's Labor supply between the wages 7 $35 and $ 40 per hours is approximately 4.09, Which means the Becky's supply of Lobor over this wage range is Elastic Jos CamScanner