Paolo is a retired teacher living in San Diego who works as a caddy to supplement their normal income. At an hourly wage rate of $15, they are willing to caddy 5 hours per week. Upping the wage to $25 per hour, they are willing to caddy 14 hours per week.
Using the midpoint method, the elasticity of Paolo’s labor supply between the wages of $15 and $25 per hour is approximately , which means that Paolo’s supply of labor over this wage range is .