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Total Revenue is Rs 400 When the Price of the Commodity is Rs 2 per Unit. When Price Rises to Rs 3 per Unit, the Quantity Supplied is 300 Units. Calculate the Price Elasticity of Supply - Economics

Question

Total revenue is Rs 400 when the price of the commodity is Rs 2 per unit. When price rises to Rs 3 per unit, the quantity supplied is 300 units. Calculate the price elasticity of supply.

Solution

 Price

 (P)

 Total Revenue

         (TR)

Quantity Supplied

          (QS)

2

      400

          200

3

      -

          300

`ΔQ_s=300-200=100` 

`ΔP=3-2=1`

E_s=`(ΔQ)/(ΔP)xxp/q=100/1xx2/200` 

`∴E_s=1`

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Total Revenue is Rs 400 When the Price of the Commodity is Rs 2 per Unit. When Price Rises to Rs 3 per Unit, the Quantity Supplied is 300 Units. Calculate the Price Elasticity of Supply Concept: Measurement of Price Elasticity of Supply - Percentage-change Method.
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