The price of a commodity is Rs. 5 per unit and its quantity suppled is 600 units. If its price rises to Rs. 6 per unit , its quantity supplied rises by 25 percent. Calculate its price elasticity of supply.

The price of a commodity is Rs. 5 per unit and its quantity suppled is

1.	The price of a commodity is Rs. 5 per unit and its quantity suppled is 600 units. If its price rises to Rs. 6 per unit , its quantity supplied rises by 25 percent. Calculate its price elasticity of supply.
Answer» <html><body><p></p>Solution :`E_(s) =(%"Change in <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a>")/(%"change in price")=(<a href="https://interviewquestions.tuteehub.com/tag/25-296426" style="font-weight:bold;" target="_blank" title="Click to know more about 25">25</a>)/((1)/(<a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a>)xx100)=(25)/(20)=1.25` <br/> Supply is <a href="https://interviewquestions.tuteehub.com/tag/elastic-967540" style="font-weight:bold;" target="_blank" title="Click to know more about ELASTIC">ELASTIC</a> because `E_(s)<a href="https://interviewquestions.tuteehub.com/tag/gt-1013864" style="font-weight:bold;" target="_blank" title="Click to know more about GT">GT</a> 1`.</body></html>