Advertisements
Advertisements
Question
When the percentage change in the quantity supplied of a commodity is exactly equal to the percentage change in its price it is known as ______.
Options
Unitary elastic supply
Relatively inelastic supply
Relatively elastic supply
Perfectly inelastic supply
Solution
When the percentage change in the quantity supplied of a commodity is exactly equal to the percentage change in its price it is known as Unitary elastic supply.
Explanation:
Unitary elastic supply occurs when the percentage change in the quantity supplied of a commodity is exactly equal to the percentage change in its price. This means the elasticity of supply (Es) equals 1, indicating a proportional relationship between price and quantity supplied.
APPEARS IN
RELATED QUESTIONS
Draw a perfectly inelastic supply curve.
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es = ∞
Draw a perfectly elastic supply curve.
Identify the elasticity of supply (es) of S1, S2 and S3 supply curves:
Identify the elasticity of supply for the following with proper reasoning:
Short run and long run period.
Identify the elasticity of supply for the following with proper reasoning:
Nature of the entrepreneurs.
What is the degree of elasticity of supply in the diagram?
When price of a·product rises by 10% its quantity supplied also rises by 10%. Find out price elasticity.
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be ______.
Define elasticity of supply.
Price of a product increases by 2%. As a result, its supply rises by 4%. What is elasticity of supply of the commodity?
When there is no change in price, but quality supplied changes, it implies a situation of ______.
How is elasticity of supply measured according to percentage method?
Give the meaning of perfectly inelastic supply.
Define price elasticity of supply.
Draw the supply curve showing price elasticity of supply equal to one.
If the price of a commodity falls by 10% and consequently, the quantity supplied decreases by 20%, what will be its elasticity of supply?
Why does the measure of pnce elasticity of supply of a good carry plus sign?
What do you mean by perfectly inelastic supply?
