The Price Elasticity of the Supply of Teenage Labour Services

question 87

Multiple Choice

The price elasticity of the supply of teenage labour services is approximately 1.36.Suppose the government of Prince Edward Island raises the minimum wage rises from $10.00 per hour to $10.25.Using the midpoint formula, calculate the approximate change in the quantity supplied of teenage labour.

• A)17.3 percent
• B)24.4 percent
• C)3)4 percent
• D)There is insufficient information to answer the question.

Grasp the concept of opportunity cost in decision-making processes.

Distinguish between private and common ownership and its implications on care and conservation of resources.

Appreciate the role of technology and efficient communication in reducing transaction costs and enabling greater volumes of trade.

Understand the economic rationale for specialization and comparative advantage in producing goods and services.

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