Answer:
0.5
Explanation:
Given: Wages was $10 per hour.
Labor supply= 30 hours per week.
New wages= $12 per hour
New labor supply= 33 hours per week.
Elasticity of labor supply is calculated to know the response of labor supply due to change in wage rate in a given period of time.
Formula; Elasticity of labor supply=
First finding the percentage change in labor supply.
⇒
⇒
∴
now, finding percentage change in wage rate
⇒
⇒
∴
Next, finding the elasticity of labor supply.
Elasticity of labor supply=
∴ Elasticity of labor supply =
Hence, 0.5 is the elasticity of labor supply.