Respuesta :
Answer:
Elascticity of supply is 2.38, which means that it is highly elastic.
Explanation:
At a wage rate of $50 per hour, Charles is willing to work 10 hours per week.
At a wage rate of $65 per hour, he is willing to work 19 hours per week.
Here,
P1 = $50, P2 = $65, Q1 = 10 hours, Q2=19 hours
Change in labor supply
= [tex]\frac{Q2\ -\ Q1}{\frac{Q1\ +\ Q2}{2} }[/tex]
= [tex]\frac{19\ -\ 10}{\frac{10\ +\ 19}{2} }[/tex]
= [tex]\frac{9}{14.5}[/tex]
= 0.62
Change in labor price
= [tex]\frac{P2\ -\ P1}{\frac{P1\ +\ P2}{2} }[/tex]
= [tex]\frac{65\ -\ 50}{\frac{50\ +\ 65}{2} }[/tex]
= [tex]\frac{15}{57.5}[/tex]
= 0.26
Elasticity of supply
=[tex]\frac{Change in labor supply}{Change in labor price}[/tex]
=[tex]\frac{0.62}{0.26}[/tex]
=2.38
Elascticity of supply is 2.38, which means that it is highly elastic.
The price elasticity of supply Charles is 2.38.
It states that it is highly elastic.
"Price elasticity of supply"
Given :
P1 = $50
P2 = $65
Q1 = 10 hours
Q2=19 hours
Change in labor supply
The labor supply is the whole hours (balanced for concentrated of exertion) that laborers wish to work at a given genuine wage rate.
- Change in labor supply= Q2-Q1/Q1+Q2/2
- Change in labor supply= 19-10/19+10/2
- Change in labor supply= 9/14.5
- Change in labor supply= 0.62
Change in labor price
The cost of labor is the whole of all compensation paid to workers, as well as the fetched of worker benefits and finance charges paid by an manager.
- Change in labor price= P2-P1/P1+P2/2
- Change in labor price= 65-50/65+50/2
- Change in labor price= 15/57.5
- Change in labor price= 0.26
Elasticity of supply
Price elasticity of supply measures the responsiveness to the supply of a great or benefit after a alter in its market price.
- Elasticity of supply= Change in Labor Supply/ Change in Labor Price
- Elasticity of supply=0.62/0.26
- Elasticity of supply=2.38
The Elasticity of supply is 2.38 it means it is highly elastic.
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