Calculating the price elasticity of supply
Brian is a college student who lives in San Diego and does some consulting work for extra cash. At a wage of $25 per hour, he is willing to work 4 hours per week. At $40 per hour, he is willing to work 10 hours per week.
Using the midpoint method, the elasticity of Brian’s labor supply between the wages of $25 and $40 per hour is approximately (0.08 or .54 or 1.86 or 17.5) , which means that Brian’s supply of labor over this wage range is (elastic or inelastic).