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A worker receives CAD 3,000 of lump-sum transfers from the government annually and has 4,160 available hours per year. He is currently working 2,200 hours

A worker receives CAD 3,000 of lump-sum transfers from the government annually and has 4,160 available hours per year. He is currently working 2,200 hours per year at the wage rate of CAD 20.00 per hour. After being promoted, his wage rate increases to CAD 25.00 per hour, and he decides to work 2,700 hours. He is indifferent between his original work decision and working 2,850 hours at CAD 25.00 per hour. What is the compensated wage elasticity of labor supply implied by her response to the wage increase?

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