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According to the source, how does the wage elasticity of labor supply typically compare between teenage workers and adult workers in their thirties and forties?
ATeens are elastic; adults are inelastic
BTeens are inelastic; adults are elastic
CBoth groups respond about equally
DNeither group responds to wage changes
Answer & Solution
Correct answer: A. Teens are elastic; adults are inelastic
1. Wage elasticity of labor supply measures how responsive hours worked are to a change in wages.
2. Teenage workers as having a fairly elastic labor supply, so their hours respond strongly to wage changes.
3. It describes adult workers in their prime earning years, the thirties and forties, as having a fairly inelastic labor supply instead.
4. That means a given wage change moves teenagers' hours by a larger percentage than it moves prime-age adults' hours.
_Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 5 "Elasticity", section 5.4 | Elasticity in Areas Other Than Price_
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