When the Wage Was $10 Per Hour, a Group of Workers

question 3

Multiple Choice

When the wage was $10 per hour, a group of workers supplied 30 hours of work per week on average. The wage then increased to $12 per hour, and the same group of workers supplied 33 hours of work per week on average. What is the elasticity of labor supply for this group of workers?

• A) 0
• B) 0.5
• C) 1.0
• D) 1.5
• E) 2.0