If price of a commodity falls from Rs.50/unit, supply also falls from – InterviewSolution

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1.	If price of a commodity falls from Rs.50/unit, supply also falls from 400 units to 200 units. Calculate price elasticity of supply.
Answer» `{:(" P 50"),(" P"_(1)" 48,"),(ulbar(DeltaP" -2 ")):}" "{:("Q 400"),(Q_(1)" 200"),(ulbar(DeltaQ" -200")):}" "P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(50)/(400)xx(-200)/(-2)=12.5` Ans. `P.e_(S)=12.5`

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