Advertisements
Advertisements
Question
The quantity of a commodity supplied increases by 25% when its price rises by 10%. Calculate price elasticity of supply.
Solution
Es = `(ΔQ)/(ΔP)xxP/Q`
= `25/10`
= 2.5
APPEARS IN
RELATED QUESTIONS
Identify the degree of elasticity of supply from the following graph:
Identify the elasticity of supply for the following with proper reasoning:
Perishable and durable goods.
Which of the following measures of price elasticity shows elasticity shows elastic supply?
If price elasticity of supply is greater than 1, then supply is said be elastic.
When an entrepreneur introduces a new technique or a new product, it is called ______.
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be ______.
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 ______.
Which of the following measures of price elasticity shows inelastic supply?
Draw a straight line supply showing elasticity greater than one.
Price elasticity of supply is likely to be ______ in the long run.
Cotton and cotton seeds are examples of ______ supply.
Draw and briefly explain a perfectly elastic supply curve.
Give the meaning of perfectly inelastic supply.
Draw the supply curve showing price elasticity of supply less than one.
Indicate the degree of elasticity on the supply curve given below:
Identify and define the degree of price elasticity of supply from the diagram for the supply curves S1, S2, S3, S4.
Using graphs, explain any four types of elasticity of supply.
What is meant by inelastic supply?
What do you mean by elastic supply?
