Question

Calculating the price elasticity of supply Antonio is a retired teacher who lives in Chicago and teaches tennis lessons for extra cash. At a wage of $30 per hour, he is willing to teach 6 hours per week. At $50 per hour, he is willing to teach 16 hours per week. Using the midpoint method, the elasticity of Antonio’s labor supply between the wages of $30 and $50 per hour is approximately , which means that Antonio’s supply of labor over this wage range is

Answer 1

E_p = 1.818181818

The supply of labor is elastic as it is higher than 1

Step-by-step explanation:

mid-point formula:

`E_p =(q_1-q_2)/((q_1+q_2)/(2)) /(p_1-p_2)/((p_1+p_2)/(2))`

q1 6 p1 30

q2 16 p2 50

`E_p =(-10)/((22)/(2)) /(20)/((80)/(2))`

`E_p =(-10)/(11) /(20)/(40)`

E_p = -1.818181818