Question

supply of good is 50 unit and price 10 when price rises by 5 supply also rise by 50 units calculate the price elasticity of supply​

Answer 1

Answer:

2

Explanation:

Let

Initial Price=P1=10

Updated Price=P2=10+5=15

•°• ∆P= 5

Initial Quantity= Q1=50

Updated Quantity=Q2=50+50=100

•°•∆Q=50

as we know by proportionate method Es= (∆Q/∆P)x(P1/Q1)

•°• Es=(50/5)x(10/50)

Es=2(ans)

some key terms

∆= delta which means difference between two constants

Es= Price Elasticity of supply

as in question written "by" which means it increase further than that number if was written by "to* then it would mean it is fixed increased to exact that number.

i hope this helps