Advertisements
Advertisements
Question
Price of a product increases by 2%. As a result, its supply rises by 4%. What is elasticity of supply of the commodity?
Advertisements
Solution
Elasticity of Supply (Es) = `("Percentage change in quantity supplied")/("Percentage change in price")`
Percentage change in price = 2%
Percentage change in quantity supplied = 4%
Es = `(4%)/(2%)`
= 2
APPEARS IN
RELATED QUESTIONS
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:
Explain any three factors affecting elasticity of supply.
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.
When an entrepreneur introduces a new technique or a new product, it is called ______.
Elasticity of supply is measured by:
When the percentage change in the quantity supplied of a commodity is exactly equal to the percentage change in its price it is known as ______.
Define elasticity of supply.
Which of the following measures of price elasticity shows inelastic supply?
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
Price elasticity of supply is likely to be ______ in the long run.
Give the meaning of perfectly elastic supply.
Identify and define the degree of price elasticity of supply from the diagram for the supply curves S1, S2, S3, S4.
Using graphs, explain any four types of elasticity of supply.
Draw a straight line supply curve of the following situation.
More than unitary elastic
Draw relatively inelastic supply.
