Suppose the current level of output is 9000 and the elasticity of output with respect to labor is 0.9. A 10% increase in labor would increase the level of output to

4) Find the elasticity of substitution (o) for the following production functions. a.) q = 10 K0.²L0.8 b.) q = 2 [0.2K-2 + 0.8L¬2 ]-0.5

Calculating the price elasticity of supply Janet is a graduate student living in San Francisco who works as a caddy to supplement their normal income. At an hourly wage rate of $40, they are willing to caddy 9 hours per week. Upping the wage to $55 per hour, they are willing to caddy 17 hours per week. Using the midpoint method, the elasticity of Janet’s labor supply between the wages of $40 and $55 per hour is approximately , which means that Janet’s supply of labor over this wage range is .

Question 4 If wages increase at a 5% rate and the quantity demanded of labor decreases by 10%, then the elasticity of demand for labor is: 50. 0.5. 2. 10.