When the price of a commodity falls from Rs. 10 per unit to Rs. 9 per unit , its quantity supplied falls by 20 percent . Calculate its price elesticity of supply.

When the price of a commodity falls from Rs. 10 per unit to Rs. 9 per

1.	When the price of a commodity falls from Rs. 10 per unit to Rs. 9 per unit , its quantity supplied falls by 20 percent . Calculate its price elesticity of supply.
Answer» Solution :Percent change in price `=(-1)/(10)xx100=-10%` Percent change in supply =-20% `E_(s) =("Percentage change in supply")/("Percentage change in price")=(-20)/(-10)=2`