Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
Question
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Chapter 17, Problem 17.4.10PA

Subpart (a):

To determine

Reason for high wage.

Subpart (b):

To determine

Reason for high wage.

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11. Calculating the price elasticity of supply Nick is a volunteer fire fighter living in Chicago who coaches youth soccer to supplement their normal income. At an hourly wage rate of $15, they are willing to coach 5 hours per week. Upping the wage to $25 per hour, they are willing to coach 14 hours per week. Using the midpoint method, the elasticity of Nick's labor supply between the wages of $15 and $25 per hour is approximately means that Nick's supply of labor over this wage range is , which
Jane is the General Manager at a new café and wants to hire a few baristas.  The going rate for baristas is $15 per hour.  Jane has heard that many of the local coffee shops have high turnover with baristas “ghosting” them – simply not showing up for their shifts and never coming back.  Jane starts to put together an advertisement to hire baristas for $15 per hour, but changes her mind and lists the wages she will pay at $20 per hour.  Why would Jane pay $15 per hour?  What’s her rationale for paying $20 (or any wage higher than $15)?
11. Calculating the price elasticity of supply Dina is a stay-at-home parent who lives in Denver and does some consulting work for extra cash. At a wage of $25 per hour, she is willing to work 6 hours per week. At $35 per hour, she is willing to work 16 hours per week. Using the midpoint method, the elasticity of Dina's labor supply between the wages of $25 and $35 per hour is approximately that Dina's supply of labor over this wage range is which means

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Economics (7th Edition) (What's New in Economics)

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