Question

If quantity supplied increases by 60% due to a 50% increase in price, then elasticity of supply is ______

पर्याय

• (-) 1.2

• (+) 1.2

• (-) 0.83

• (+) 0.83

Answer 1

If quantity supplied increases by 60% due to a 50% increase in price, then elasticity of supply is (+) 1.2.

Explanation:

Percentage change in quantity supplied/Percentage change in price = `60/50 = 1.2`