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» <html><body><p></p>Solution :Percent change in price `=(-<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>)/(<a href="https://interviewquestions.tuteehub.com/tag/10-261113" style="font-weight:bold;" target="_blank" title="Click to know more about 10">10</a>)xx100=-10%` <br/>Percent change in supply =-<a href="https://interviewquestions.tuteehub.com/tag/20-287209" style="font-weight:bold;" target="_blank" title="Click to know more about 20">20</a>% <br/> `E_(s) =("Percentage change in supply")/("Percentage change in price")=(-20)/(-10)=2`</body></html>