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What is theprice elasticityof supplymean ? How dowe measureit ? |
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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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