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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 ( ).
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The owners decide to begin spending immediately a rather large sum on advertising designed to decrease elasticity.
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