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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
Draw a well-labelled diagram showing the price elasticity of supply of a commodity starting from the origin.
Identify the degree of elasticity of supply from the following graph:
Identify the elasticity of supply for the following with proper reasoning:
Perishable and durable goods.
When price of a·product rises by 10% its quantity supplied also rises by 10%. Find out price elasticity.
If price elasticity of supply is greater than 1, then supply is said be elastic.
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
When an entrepreneur introduces a new technique or a new product, it is called ______.
When the percentage change in the quantity supplied of a commodity is exactly equal to the percentage change in its price it is known as ______.
Assertion (A): In case of perfectly inelastic supply, supply curve is a vertical straight line supply curve.
Reason (R): Supply does not change with change in price in case of Es = 0.
Price elasticity of supply is likely to be ______ in the long run.
Cotton and cotton seeds are examples of ______ supply.
Draw and briefly explain a perfectly inelastic supply curve.
The price of a commodity rises from ₹ 20 to ₹ 40 Consequently, its supply increases from 100 units to 400 units. Calculate price elasticity of supply.
Give the meaning of perfectly elastic supply.
What is meant by elasticity of supply?
What is meant by inelastic supply?
Price elasticity of supply of a good is 0.8. Is the supply 'elastic' or 'inelastic', and why?
Draw a straight line supply curve of the following situation.
More than unitary elastic
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es > 1
