Question

Price elasticity of supply of a good Is Rupees 2. A producer supplies 100 units of a good at a price of Rupees 20. At what price elasticity of supply? Calculate

Answer 1

$\huge\tt{AnsweR}$

$es = \frac{p}{q} \times \frac{q}{p} \\ = \frac{20}{100} \times \frac{ - 50}{p} \\ = p = - 5 \\ p = p + 20 + ( - 5) = 15$

Answer 2

es = p/q * q/p
= 20/100 * -5/p
p = -5

p = p + 20 + (-5) = 15