A company wants to generate a forecast for unit demand for year 2018 using exponential smoothing. The actual demand in year 2017
1 answer:
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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
=
=
=
= 0.62
Change in labor price
=
=
=
= 0.26
Elasticity of supply
=
=
=2.38
Elascticity of supply is 2.38, which means that it is highly elastic.