Calculating the price elasticity of supply.

Beth is a college student who lives in San Francisco and provides math tutoring for extra cash. At a wage of $30 per hour, she is willing to tutor 6 hours per week. At $50 per hour, she is willing to tutor 16 hours per week.

Using the midpoint method, the elasticity of Beth's labor supply between the wages of $30 and $50 per hour is approximately ( ), which means that Beth's supply of labor over this wage range is ( ).

Respuesta :

Answer:

Explanation:

W1= 30             W2 =50

Q1 = 6              Q2 = 16

Elasticity of supply = (16-6) / (50-30) * (50+30) / (6+16)

 = (10/20) * (80/22) =80/44= 1.82

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