Advertisements
Advertisements
Question
The quantity of a commodity supplied increases by 25% when its price rises by 10%. Calculate price elasticity of supply.
Advertisements
Solution
Es = `(ΔQ)/(ΔP)xxP/Q`
= `25/10`
= 2.5
APPEARS IN
RELATED QUESTIONS
Draw a perfectly elastic supply curve.
Define a relatively elastic supply.
Identify the elasticity of supply for the following with proper reasoning:
Short run and long run period.
Identify the elasticity of supply for the following with proper reasoning:
Nature of the entrepreneurs.
When price of a·product rises by 10% its quantity supplied also rises by 10%. Find out price elasticity.
If the price elsaticity of supply is 1 and the percentage change in price is 10, then the percentage change in quatity supplied should be ______.
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 ______.
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I:
| Column I | Column II |
| A. Perfectly Inelastic | (i) Es > 1 |
| B. Perfectly Elastic | (ii) Es < 1 |
| C. Inelastic | (iii) Es = 0 |
| D. Highly Elastic | (iv) Es = infinity |
Choose the correct alternative:
Define elasticity of supply.
When there is no change in price, but quality supplied changes, it implies a situation of ______.
Cotton and cotton seeds are examples of ______ supply.
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.
Explain any four determinants of elasticity of supply.
Draw the supply curve showing price elasticity of supply equal to one.
Draw the supply curve showing price elasticity of supply greater than one.
Draw and explain the following degree of elasticity of supply.
Ep > 1
Price elasticity of supply of a good is 0.8. Is the supply 'elastic' or 'inelastic', and why?
Why is the supply of eggs inelastic?
