Plus sign attached to measure their price elasticity of supply
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Heya...
Price elasticity refers to degree of % change in Quantity supplied with respect to % change in own price of the commodity...
It's formula is....
% change in qu supplied / % change in price of commodity....
* In this plus sign is prefixed because here is positive relationship between own price of commodity and quantity supplied.....
* So producer want to sell more on more price ....
Price elasticity refers to degree of % change in Quantity supplied with respect to % change in own price of the commodity...
It's formula is....
% change in qu supplied / % change in price of commodity....
* In this plus sign is prefixed because here is positive relationship between own price of commodity and quantity supplied.....
* So producer want to sell more on more price ....
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