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प्रश्न
How is elasticity of supply measured according to the percentage method?
How is the price elasticity of supply measured?
How can Elasticity of supply be measured?
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उत्तर
According to the percentage method, elasticity of supply (Es) is the ratio between the percentage change in quantity supplied and the percentage change in price of the commodity. In fact, this method originated from the definition of price elasticity of supply itself.
Price elasticity of supply = `("Percentage change in quantity supplied")/("Percentage change in its Price")`
Percentage Change in quantity supplied = `"(ΔQ)"/"Q"xx100`
Percentage change in price = `"(ΔP)"/"P"xx100`
Now the percentage formula can be written as
Es= `((ΔQ)/Qxx100)/((ΔP)/Pxx100)`
Cancelling out 100 by 100, we get
Es = `((ΔQ)/Q)/((ΔP)/P)`
When Q = initial quantity
P Initial price
ΔQ = Change in quantity supplied
ΔP = Change in price of the commodity
Notes
Students should refer to the answer according to the question.
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संबंधित प्रश्न
Define a relatively elastic supply.
If price elasticity of supply is greater than 1, then supply is said be elastic.
The given diagram is a case of ______ supply.
Which of the following statements are true?
The cost of production will increase if
- The government gives subsidies
- The firm uses obsolete technology
- The price of diesel increases
Elasticity of supply is measured by:
A linear supply curve starting from the origin making an angle of 75 degree with X-axis will have ______.
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column:
| Column I | Column II |
| A. Perfectly Inelastic | (i) Es > 1 |
| B. Perfectly Elastic | (ii) Es < 1 |
| C. Inelastic | (iii) Es = 0 |
| D. Highly Elastic | (iv) Es = infinity |
Choose the correct alternative:
With the help of a formula calculate the elasticity of supply from the following table:
| Price | Quantity supplied |
| 10 | 200 |
| 15 | 225 |
The quantity of a commodity supplied increases by 25% when its price rises by 10%. Calculate price elasticity of supply.
Price elasticity of supply is likely to be ______ in the long run.
Draw and briefly explain a perfectly inelastic supply curve.
Explain any four determinants of elasticity of supply.
What is meant by inelastic supply?
What do you mean by elastic supply?
When is supply of a good unitary elastic?
Define a relatively inelastic supply.
Draw relatively inelastic supply.
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es > 1
