#### Question

When price of a good rises from Rs 10 to Rs 12 per unit the producer supplies 10 percent more. Calculate price elasticity of supply.

#### Solution

Given that

P_{0}= Rs 12, P_{1} = Rs 9

Percentage change in quantity supplied =(-)75%

Change in price (ΔP)=P_{1}- P_{0}

= 9-12

= (-3)

Percentage change in price = `(DeltaP)/P_0xx100`

`=((-3))/12xx100=-25%`

`"Price elasticity of supply" (E_s)="Percentage change in quantity supplied"/"Percentage change in price"`

`=((-)75%)/((-)25%)=3`

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Solution When Price of a Good Rises from Rs 10 to Rs 12 per Unit the Producer Supplies 10 Percent More. Calculate Price Elasticity of Supply. Concept: Concept of Supply.