Elasticity of amys labor supply between the wages

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Reference no: EM131424717

Amy is a college student who lives in Dallas and does some consulting work for extra cash. At a wage of $25 per hour, she is willing to work 6 hours per week. At $35 per hour, she is willing to work 16 hours per week.

Using the midpoint method, the elasticity of Amy’s labor supply between the wages of $25 and $35 per hour is approximately (.03, .37, 2.73, or 11), which means that Amy’s supply of labor over this wage range is _____ (elastic or inelastic).

Reference no: EM131424717

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