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प्रश्न
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be ______.
विकल्प
E1 > 1
ES = 1
E1 < 1
E1 = 0
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उत्तर
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be E1 < 1.
Explanation:
Es = `("Percentage change in quantity supplied")/("Percentage change in price")`
Es = `(5%)/(50%)`
= 0.1
Since Es < 1, the supply is inelastic, meaning the percentage change in quantity supplied is less than the percentage change in price.
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संबंधित प्रश्न
Explain briefly the impact of the cost of production on the elasticity of supply.
Draw a perfectly inelastic supply curve.
Draw a perfectly elastic supply curve.
Define a relatively elastic supply.
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
Explain any three factors affecting elasticity of supply.
Which of the following measures of price elasticity shows elasticity shows elastic supply?
Elasticity of supply is measured by:
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I:
| 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:
Define elasticity of supply.
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
Draw and briefly explain a perfectly inelastic supply curve.
Explain any four determinants of elasticity of supply.
Draw the supply curve showing price elasticity of supply less than one.
When is supply of a good unitary elastic?
What do you mean by perfectly inelastic supply?
Define a relatively inelastic supply.
Draw relatively elastic supply.
