Elasticity Supply for labour

Question 1

what is the elasticity of demand of supply also known as

Answer 1

Wage elasticity supply of labour

Question 2

how do you calculate wage elasticity supply

Answer 2

%change in supply/
%change in wage rate

Question 3

if W.E.S > 1 What is supply relatively

Answer 3

relatively elastic or sensitive to change in wage

Question 4

if W.E.S < 1 what is supply relatively

Answer 4

relatively inelastic or insensitive to change in wage

Question 5

If wage rate increased by 10% and there was a +20% increase in Supply of labour what would the W.E.S be

Answer 5

+2 - the supply of labour would double the wage rate increase

Question 6

If wage rate increased by 10% and there was a +5% increase in Supply of labour what would the W.E.S

Answer 6

+0.5 - the supply of labour would be half the wage increase

Question 7

Why can Supply of labour be elastic
e.g. 2

Answer 7

the job is mobile allowing for you to transfer easily
a low skilled job means that low training is required

Question 8

Why can Supply of labour be inelastic
e.g. 0.5

Answer 8

a highly skilled job requiring alot of qualifications
strict migration rules
jobs in areas of high cost of living mean that people can’t move because they can’t afford it

Question 9

what does the Supply curve look like for elastic Wage elasticity of supply of labour

Answer 9

a shallow curve which shows a greater change in quantity supplied then wage change

Question 10

what does the Supply curve look like for inelastic wage elasticity of supply of labour

Answer 10

a steep curve which shows a greater change in wage change then quantity supplied