Amy is a stay-at-home parent who lives in Dallas and does some consulting work for extra cash. At a wage of $50 per hour, she is willing to work 7 hours per week. At $65 per hour, she is willing to work 10 hours per week.
Using the midpoint method, the elasticity of Amy’s labor supply between the wages of $50 and $65 per hour is approximately , which means that Amy’s supply of labor over this wage range is .

Elasticity = 1.35(approx)

Explanation:

Given:

wages = $50 per hour

Per day work = 7 hours

New wages = $65 per hour

Per day work = 10 hours

Computation:

Midpoint method:

Elasticity = (Change in labor / Average labor ) / (Change in wages / Average wages)

Elasticity = 1.35(approx)

Elastic and higher than 1

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.