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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 elasticity of supply (es) of S1, S2 and S3 supply curves:
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
Identify the degree of elasticity of supply from the following graph:
Identify the elasticity of supply for the following with proper reasoning:
Short run and long run period.
What is the degree of elasticity of supply in the diagram?
When price of a·product rises by 10% its quantity supplied also rises by 10%. Find out price elasticity.
Which of the following measures of price elasticity shows elasticity shows elastic supply?
If price elasticity of supply is greater than 1, then supply is said be elastic.
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.
Which of the following measures of price elasticity shows inelastic supply?
Draw and briefly explain a perfectly inelastic supply curve.
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?
When is supply of a good unitary elastic?
What do you mean by perfectly inelastic supply?
Explain the percentage method of measuring price elasticity of supply.
Define a relatively inelastic supply.
