Cho is a retired teacher who lives in Denver and provides ma

Cho is a retired teacher who lives in Denver and provides math tutoring for extra cash. At a wage of $35 per hour, she is willing to tutor 4 hours per week. At $45 per hour, she is willing to tutor 8 hours per week.

Using the midpoint method, the elasticity of Cho\'s labor supply between the wages of $35 and $45 per hour is approximately

0.06

0.37

2.67

15

, which means that Cho\'s supply of labor over this wage range is

elastic

inelastic

.

Solution

elastic