If a person works 10 percent fewer hours after being given a raise of 20 percent, the individual's elasticity of labor supply is:

Name: If a person works 10 percent fewer hours after being given a raise of 20 percent, the individual's elasticity of labor supply is:
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Quizplus · Accepted Answer

Elasticity of labor supply is calculated as the percentage change in hours worked divided by the percentage change in wage. Here, hours worked decreased by 10% and wage increased by 20%, so elasticity = -10% / 20% = -0.5.

If a Person Works 10 Percent Fewer Hours After Being