9 Calculating the price elasticity of supply Manuel is a sta

9. Calculating the price elasticity of supply Manuel is a stay-at-home parent who lives in Philadelphia and does some consulting work for extra cash. At a wage of $50 per hour, he is willing to work 7 hours per week. At $65 per hour, he is willing to work 10 hours per week. Using the midpoint method, the elasticity of Manuel\'s labor supply between the wages of $50 and $65 per hour is approximately which means that Manuel\'s supply of labor over this wage range is

Solution

Elasticity of labour supply = Change in work hours / Change in wage rate

Elasticity of labour supply = (10 - 7 ) / (65-50)

Elasticity of labour supply = 3/15 = 1/5

Elasticity of labour supply = 0.2

Answer:0.2

Answer: Inelastic

The wage rate for elasticity of labour supply is inelastic in nature .