1.

What is theprice elasticityof supplymean ? How dowe measureit ?

Answer»

SOLUTION :PRICE Elasticityof supply means THEDEGREE of responsiveness ofsupplyfor a commditywithreferenceto changein THEPRICE of suchcommodity.It is measuredas :
Price Elasticity of Supply `E_(s)) = (" Percentage change in QuantitySupplied ")/(" Percntage change in Price")`


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