At Rs.12/unit, quantity supplied of a commodity is 500 units. When its – InterviewSolution

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1.	At Rs.12/unit, quantity supplied of a commodity is 500 units. When its price riese to Rs.15/unit, its quantity supplied rises to 650 units. Calculate price elasticity of supply. Is supply elastic ?
Answer» `{:(" P 12"),(" P"_(1)" 15"),(ulbar(DeltaP" 3")):}" "{:("Q 500"),("Q"_(1)" 650"),(ulbar(DeltaQ" 150")):}" "P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(12)/(500)xx(150)/(3)=1.2` Yes, supply is elastic as it is greater than one.

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