Hubert is a stay-at-home parent who lives in New York City and teaches tennis lessons for extra cash. At a wage of $35 per hour, he is willing to teach 4 hours per week. At $45 per hour, he is willing to teach 8 hours per week. Using the midpoint method, the elasticity of Jake’s labor supply between the wages of $50 and $65 per hour is approximately ___ , which means that Jake’s supply of labor over this wage range is ___ .

Answer and Explanation:

The computation of the midpoint elasticity is as follows;

Midpoint elasticity

= (Change in labor supplied ÷ Average labor supplied) ÷ (Change in wage rate ÷ Average wage rate)

= [(8 - 4) ÷ (8 + 4) ÷ 2] ÷ [$($45 - $35) ÷ $($45 + $35) ÷ 2]

= [4 ÷  (12 ÷ 2)] / [$10 ÷ ($80 ÷ 2)]

= (4 ÷ 6)  ÷ ($10 / $40)

= 0.67 ÷ 0.25

= 2.68

As the elasticity is more than 1 so the supply of labor should be elastic

i might look it up later.

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.