What is the elasticity of labor supply? Discuss why economists disagree about the magnitude of the elasticity of labor supply.

The elasticity of labor supply measures the extent to which labor supply responds to a change in the wage rate in a given period.

The level to which the quantity supplied for labor will go up or down due to a decrease or increase in work.

If there is a high elasticity quantity of labor changes as wages change. For inelastic supply quantity supplied will not have a significant impact on wages.

Example for jobs that require less training the supply of labor is elastic such as on education sectors; many schools may find difficulties to allocate teachers since the salaries remain flat or instead deducted, whereas for more skilled jobs the supply of labor doesn't change quickly as a result of compensation for work done.

Economist tends to disagree with the elasticities of labor supply on how many numbers of hours will respond to changes in wages where goods and services are offered. The quantity supplied is low on the short run but this changes in the long term. This occurs since producers opt to change supply on the long run rather than the short run, which is caused by challenges of hiring more workers, e.g., women who will work for fewer hours, investing on technology in the short term compared to the long run.

Supply is inelastic in the short run. In long run supply is elastic hence shift in prices adjust more easily. The economist does not buy this idea.