Question

In: Economics

Using the midpoint method, the elasticity of Cho's labor supply between the wages of $50 and $65 per hour is approximately

Calculating the price elasticity of supply 

Cho is a retired teacher who lives in Dallas and does some consulting work for extra cash. At a wage of SSO per hour, she is willing to work iO hours per week. At $65 per hour, she is willing to work 19 hours per week. 

Using the midpoint method, the elasticity of Cho's labor supply between the wages of $50 and $65 per hour is approximately _______ . which means that Cho's supply of labor over this wage range is _______ .

Solutions

Expert Solution

Elasticity of labour supply = Change (%) in labour hours supplied/ Change (%) in wage rate

Elasticity of labour supply = (L2 - L1)/(W2 - W1) x (W2 + W1)/(L2 + L1) = 9/15 x 115/29

Elasticity = 2.38

Cho's supply of labour over this wage range is elastic. (absolute value > 1)

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Using the midpoint method, the elasticity of Amy's labor supply between the wages of $25 and $40 per hour is approximately
6. Calculating the price elasticity of supply Amy is a stay-at-home parent who lives in Dallas and provides math tutoring for extra cash. At a wage of $25 per hour, she is willing to tutor 4 hours per week. At $40 per hour, she is willing to tutor 10 hours per week. Using the midpoint method, the elasticity of Amy's labor supply between the wages of $25 and $40 per hour is approximately _______ ,which means that Amy's supply of labor over...
According to the midpoint method, the price elasticity of demand between points A and B is approximately _______ .
 6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in San Diego. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bike. According to the midpoint method,...
Assume that using the midpoint method, we calculated the price elasticity of demand for good A...
Assume that using the midpoint method, we calculated the price elasticity of demand for good A is 2. Hence which of the following is true if the price of good A increases by 0.1 percent? a. The quantity demanded of good A declines by 20 percent. b. The quantity demanded of good A declines from 200 to 100. c. The quantity demanded of good A declines by 0.05 percent. d. The quantity demanded of good A declines by 0.2 percent....
Question 11 pts Using the midpoint method, calculate the price elasticity of demand of Good X...
Question 11 pts Using the midpoint method, calculate the price elasticity of demand of Good X using the following information: When the price of good X is $50, the quantity demanded of good X is 400 units. When the price of good X rises to $60, the quantity demanded of good X falls to 300 units. Group of answer choices The price elasticity of demand for good X = 1.57. The price elasticity of demand for good X = 1.23....
Answer All Questions. Show your Computation. Using the midpoint method: Compute the income elasticity of good...
Answer All Questions. Show your Computation. Using the midpoint method: Compute the income elasticity of good Z. State what kind of good Z is (inferior, necessity, or luxury?) Hint: To obtain the effect of Income only, you need to look for where income is changing, but prices of Y and Z are constant. Compute cross-price elasticity of demand for good Z with respect to the price of good Y. State if goods Y and Z are complements or substitutes Hint:...
Wages is determined by the supply of and demand for the labor in the labor market...
Wages is determined by the supply of and demand for the labor in the labor market under normal competitive conditions and by the number of people looking for job and the number of companies looking for employees. In addition, wage levels are shaped by the skill sets workers bring and employers need, as well as the location of the jobs being offered. When workers sell their labor, the price they can charge is influenced by several factors on the supply...
Assume that labor demand elasticity < 0 and labor supply elasticity > 0 but small. Explain...
Assume that labor demand elasticity < 0 and labor supply elasticity > 0 but small. Explain in words and use a labor market diagram to show the effects of immigration on the receiving country’s GDP Number of native workers Labor income of native workers Number of immigrants Labor income of immigrants Total number of workers Wage rates before and after immigration Income of capitalists/consumers
Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) and indicate if the...
Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) and indicate if the goods are: 1. Inferior, 2. Normal, 3. Complements, or 4. Substitutes (Please Include The Negative signs in your answers where appropriate) A. The price of gasoline increases from 12 per barrel to 28 per barrel and as a result, the demand per month for new cars changes from 600 to 200. Part 1: The elasticity is -0.5 Part 2: These goods are (answer using...
Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) and indicate if the...
Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) and indicate if the goods are: 1. Inferior, 2. Normal, 3. Complements, or 4. Substitutes (Please Include The Negative signs in your answers where appropriate) A. The price of gasoline increases from 12 per barrel to 28 per barrel and as a result, the demand per month for new cars changes from 600 to 200. Part 1: The elasticity is Part 2: These goods are (answer using numbers,...
Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) and indicate if the...
Calculate the elasticity for the following questions (USING THE MIDPOINT (AVERAGE) FORMULA) and indicate if the goods are: 1. Inferior, 2. Normal, 3. Complements, or 4. Substitutes (Please Include The Negative signs in your answers where appropriate) A. The price of gasoline increases from 20 per barrel to 30 per barrel and as a result, the demand per month for new cars changes from 650 to 300. Part 1: The elasticity is Part 2: These goods are (answer using numbers,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT