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 this wage range is _______ .

Expert Solution

Rahul Sunny answered 2 years ago

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