CBSE (Arts) Class 12CBSE
Share
Notifications

View all notifications

When Price of a Good Falls from Rs 20 to Rs 10 per Unit, Producer Reduces Supply from 100 Units to 50 Units. Calculate Price Elasticity of Supply. - CBSE (Arts) Class 12 - Economics

Login
Create free account


      Forgot password?

Question

When price of a good falls from Rs 20 to Rs 10 per unit, producer reduces supply from 100 units to 50 units. Calculate price elasticity of supply.

Solution

Given that
Q0 = 100 units and Q1 = 50 units

P0 = Rs 20 and P1 =Rs 10

ΔP = P1 - P0

ΔP=10-20=-10

ΔQ = Q1 - Q0

ΔQ = 50 - 100=-50 units

We know that

`E_s = (DeltaQ)/(DeltaP)xxP_0/Q_0`

`=(-50)/-10xx20/100`

`=5xx1/5=1`

  Is there an error in this question or solution?

APPEARS IN

Video TutorialsVIEW ALL [2]

Solution When Price of a Good Falls from Rs 20 to Rs 10 per Unit, Producer Reduces Supply from 100 Units to 50 Units. Calculate Price Elasticity of Supply. Concept: Concept of Supply.
S
View in app×