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प्रश्न
The price of a mobile handset has risen in the market. But the dealers have not been able to increase the supply proportionately.
What will be the price elasticity of supply for the mobile handset? Draw the supply curve to indicate the type of elasticity.
उत्तर
The price elasticity of supply of mobile handsets is less elastic because producers are unable to expand supply proportionately when prices rise. This means that the percentage change in supply is less than the price change. (Es < 1)
In this case, The supply curve will be upward sloping originating from the X axis.
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संबंधित प्रश्न
Explain the geometric method of measuring price elasticity of supply. Use Diagram.
The price elasticity of supply of a good is 0.8. Its price rises by 50 percent. Calculate the percentage increase in its supply.
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.
