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A worker receives 3000 of lump sum transfers from the government annually, has 4160 available hours per year. She is currently working 2200 hours per
A worker receives 3000 of lump sum transfers from the government annually, has 4160 available hours per year. She is currently working 2200 hours per year at wage rate of 20/hour. After promotion, her wage rate increased to 25/hour and she decides to work 2700 hours. She is indifferent between her original work decision and working 2850 hours as 25/hour. What is the compensated and uncompensated wage elasticity of labour supply?
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