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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.
APPEARS IN
संबंधित प्रश्न
Explain briefly the impact of the cost of production on the elasticity of supply.
Draw a perfectly inelastic supply curve.
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
Identify the value of elasticity of supply for the supply curve OS and S1S2.
Identify the elasticity of supply for the following with proper reasoning:
Short run and long run period.
Identify the elasticity of supply for the following with proper reasoning:
Nature of the entrepreneurs.
A 10 per cent increase in price of a good causes 5 per cent increase in its quantity supplied, elasticity of supply will be ______.
Which of the following measures of price elasticity shows elasticity shows elastic supply?
- Price elasticity of supply of a good is 0.8, its supply is said to be inelastic.
- If the quantity supplied of a commodity remain the same whatever its price supply is said to perfectly inelastic.
Choose the correct term for the given definition.
The ratio between the percentage change in supply to a percentage change in price.
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be ______.
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 ______.
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.
Define elasticity of supply.
When is the supply of a commodity is called elastic?
Draw a straight line supply showing elasticity greater than one.
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
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.
If the price of a commodity increases by 50% and its supply increases by 25% then calculate the price elasticity of supply following the percentage method. Identify the degree of price elasticity.
Give the meaning of perfectly elastic supply.
Draw the supply curve showing price elasticity of supply equal to one.
Draw the supply curve showing price elasticity of supply less than one.
What is meant by elasticity of supply?
If the price of a commodity falls by 10% and consequently, the quantity supplied decreases by 20%, what will be its elasticity of supply?
Why does the measure of price elasticity of supply of a good carry plus sign?
What is meant by inelastic supply?
What do you mean by elastic supply?
What do you mean by perfectly inelastic supply?
Why is the supply of eggs inelastic?
Draw a straight line supply curve of the following situation.
More than unitary elastic
Draw relatively inelastic supply.
