Business Studies, asked by rosemariereyes653, 10 hours ago

A 14- inch Tv is originally sold at 5,000 pesos. At this price, an appliance store is able to sell 100 Tv's in the market. The following month, the new price of Tv is 7,500 pesos. However, the store has only increased its output by 5 units. How elastic was the supply of the store's Tv?

Answers

Answered by bharatihrishant

Answer:

The supply of the TV is inelastic

Explanation:

The change in the price of a 14-inch TV is 2,500 pesos i.e. a change of 50% in the price of the commodity. In the Original month with the price of the TV being 5000 pesos, the demand was of 100 Tv's, however, with a surge in the price of the TV by 50% in the following month the demand only rose to 105 TV's i.e. by 5%. Therefore the supply of the store's Tv was inelastic.

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A 14- inch Tv is originally sold at 5,000 pesos. At this price, an appliance store is able to sell 100 Tv's in the market. The following month, the new price of Tv is 7,500 pesos. However, the store has only increased its output by 5 units. How elastic was the supply of the store's Tv?​

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A 14- inch Tv is originally sold at 5,000 pesos. At this price, an appliance store is able to sell 100 Tv's in the market. The following month, the new price of Tv is 7,500 pesos. However, the store has only increased its output by 5 units. How elastic was the supply of the store's Tv?