Question

How to Calculate the Elasticity of supply if a 15 %
increase in a
price of soyabean oil increases
its supply from 300
345 units.​

Answer 1

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Answer 2

Given:

% increase = 15

Supple = q1 = 300

Supply q2 = 345

To Find:

Elasticity of supply

Solution:

Elasticity of supply = Es = percentage change in supply/ percentage change in price

Es = q2 - q1/q1 x 100

345 - 300/300 x 100

= 45/300 x 100

= 4500/300

= 15

Now, change in supply will be -

= 15/15

= 1

Answer: The elasticity of supply is one.