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Question
If quantity supplied increases by 60% due to a 50% increase in price, then elasticity of supply is ______
Options
(-) 1.2
(+) 1.2
(-) 0.83
(+) 0.83
MCQ
Fill in the Blanks
Solution
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`
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