Due to 10% rise in price of a commodity is quantity supplied rise from

1.	Due to 10% rise in price of a commodity is quantity supplied rise from 400 to 450 unit calculated price es
Answer» ANSWER: GIVEN percentage change in price =10 percent Q=200units;Q 1 =225units; ΔQ=Q 1 −Q=225−200)=25units Percentage change in quantity supplied = Q ΔQ ×100= 200 25 ×100=12.5percent Price elasticity of supply E s = Percentagechangeinprice Percentagechangeinquantitysupplied = 10percent 12.5percent =1.25 percent Price elasticity of supply =1.25

Due to 10% rise in price of a commodity is quantity supplied rise from 400 to 450 unit calculated price es

Answer»

GIVEN percentage change in price =10 percent

Q=200units;Q

=225units;

ΔQ=Q

−Q=225−200)=25units

Percentage change in quantity supplied =

ΔQ

×100=

200

×100=12.5percent

Price elasticity of supply E

Percentagechangeinprice

Percentagechangeinquantitysupplied

10percent

12.5percent

=1.25 percent

Price elasticity of supply =1.25