Fill in the blanks: Clancy is a retired teacher who lives in Chicago and provides math tutoring for extra cash. At a wage of $40 per hour, he is willing to tutor 7 hours per week. At $50 per hour, he is willing to tutor 10 hours per week. Using the midpoint method, the elasticity of Clancy's labor supply between the wages of $40 and $50 per hour is approximately _____, which means that Clancy's supply of labor over this wage range is _____.

Initial Wage rate (W0) = $40

New Wage Rate (W1) = $50

Initial Labour supply (L0) = 7

New labor supply (L1) = 10

Midpoint method of elasticity of Labor supply = (L1 -L0)/ (L1 + L0)/2 / (W1 -W0) / (W1 + W0)/2

Midpoint method of elasticity of Labor supply = (10 - 7)/ (10+7)/2 / (50 -40) / (50 + 40)/2

Midpoint method of elasticity of Labor supply = 0.35 / 0.22

Midpoint method of elasticity of Labor supply = 1.59

The elasticity of labor supply with respect to the change in wage rate is 1.59. This indicates that the labor supply at this wage range is relatively elastic. Thus:

The elasticity of Clancy's labor supply between the wages of $40 and $50 per hour is approximately 1.59, which means that Clancy's supply of labor over this wage range is relatively elastic.