Advertisements
Advertisements
प्रश्न
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be ______.
विकल्प
E1 > 1
ES = 1
E1 < 1
E1 = 0
उत्तर
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be E1 < 1.
Explanation:
Es = `("Percentage change in quantity supplied")/("Percentage change in price")`
Es = `(5%)/(50%)`
= 0.1
Since Es < 1, the supply is inelastic, meaning the percentage change in quantity supplied is less than the percentage change in price.
APPEARS IN
संबंधित प्रश्न
Explain briefly the impact of the cost of production on the elasticity of supply.
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es = ∞
Draw a well-labelled diagram showing the price elasticity of supply of a commodity starting from the origin.
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
Explain any three factors affecting elasticity of supply.
Identify the elasticity of supply for the following with proper reasoning:
Perishable and durable goods.
A 10 per cent increase in price of a good causes 5 per cent increase in its quantity supplied, elasticity of supply will be ______.
- Price elasticity of supply of a good is 0.8, its supply is said to be inelastic.
- If the quantity supplied of a commodity remain the same whatever its price supply is said to perfectly inelastic.
Choose the correct term for the given definition.
The ratio between the percentage change in supply to a percentage change in price.
Which of the following statements are true?
The cost of production will increase if
- The government gives subsidies
- The firm uses obsolete technology
- The price of diesel increases
Elasticity of supply is measured by:
A linear supply curve starting from the origin making an angle of 75 degree with X-axis will have ______.
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column:
| 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:
What is meant by elasticity of supply?
Why does the measure of pnce elasticity of supply of a good carry plus sign?
Price elasticity of supply of a good is 0.8. Is the supply 'elastic' or 'inelastic', and why?
Explain the percentage method of measuring price elasticity of supply.
Draw relatively inelastic supply.
