Advertisements
Advertisements
प्रश्न
When the price of a commodity changes from Rs 4 per unit to Rs 5 per unit, its market supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is supply elastic? Given reason
उत्तर
Given that
| Price (P) | Quantity (Q) |
| P0 = 4 | Q0 = 100 |
| P1 = 5 | Q1 = 120 |
`E_S = ((Q_1-Q_0)/Q_0 xx 100)/((P_1-P_0)/P_0 xx 100)`
`=> E_S = ((120 - 100)/100 xx 100)/((5-4)/4 xx 100) = 0.8`
`:. E_S < 1`
Therefore, elasticity of supply is inelastic.
APPEARS IN
संबंधित प्रश्न
Price is the only determinant of supply.
Individual supply and Market supply.
When the price of a good rises from Rs 20 per unit to Rs 30 per unit, the revenue of the firm producing this good rises from Rs 100 to Rs 300. Calculate the price elasticity of supply.
When price of a commodity falls from Rs 12 per unit to Rs 9 per unit, the producer supplies 75 percent less output. Calculate price elasticity of supply.
When price falls by Rs 2 per unit, supply falls from 100 units to 80 units. Price elasticity of supply is 2. What was the price per unit before change?Calculate.
When price of a good rises from Rs 8 per unit to Rs 10 per unit, producer supplies 40 units more. Price elasticity of supply is 2. What is the quantity supplied before the price change? Calculate
When price of a good raises from Rs 12 per unit to Rs 15 per unit the producer supplies 50 per cent more output. What is the price elasticity of supply? Calculate.
A producer supplies 100 units of a good at a price of Rs 20 per unit. Price elasticity of supply is 2. At what price will he supply 50 units? Calculate
State whether the following statement is true or false :
Under perfect competition price is determined by equilibrium of demand and supply.
Give reason or explain the following statement:
The supply of agriculture commodity is relatively inelastic.
Fill in the blank using proper alternative given in the bracket:
Other factors remaining constant, when price of a commodity raises there is ................. of supply.
Define or explain the following concepts (Any THREE):
Stock
State whether the following statement is TRUE and FALSE.
Geometric Method is also known as Point Method.
Distinguish between the following:
Relatively Elastic Supply and Relatively Inelastic Supply
Write short note on the following:
Elasticity of supply.
Do you agree or disagree with the following statement? Give reason.
There is no difference between stock and supply.
Answer the following about 200 to 250 words
Explain various types of Price elasticity of Supply.
State and explain the law of supply.
