Advertisements
Advertisements
Question
The price of a commodity rises from ₹ 20 to ₹ 40 Consequently, its supply increases from 100 units to 400 units. Calculate price elasticity of supply.
Advertisements
Solution
Es = `(ΔQ)/(ΔP)xxP/Q`
= `300/20xx20/100`
= 3
APPEARS IN
RELATED QUESTIONS
Draw a perfectly inelastic supply curve.
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es = ∞
Draw a perfectly elastic supply curve.
Identify the elasticity of supply (es) of S1, S2 and S3 supply curves:
Explain any three factors affecting elasticity of supply.
Identify the elasticity of supply for the following with proper reasoning:
Nature of the entrepreneurs.
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.
If price elasticity of supply is greater than 1, then supply is said be elastic.
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be ______.
Assertion (A): In case of perfectly inelastic supply, supply curve is a vertical straight line supply curve.
Reason (R): Supply does not change with change in price in case of Es = 0.
Price of a product increases by 2%. As a result, its supply rises by 4%. What is elasticity of supply of the commodity?
Price elasticity of supply is likely to be ______ in the long run.
Draw and briefly explain a perfectly inelastic supply curve.
If the price of a commodity increases by 50% and its supply increases by 25% then calculate the price elasticity of supply following the percentage method. Identify the degree of price elasticity.
Indicate the degree of elasticity on the supply curve given below:
Identify and define the degree of price elasticity of supply from the diagram for the supply curves S1, S2, S3, S4.
Why is the supply of eggs inelastic?
