Question

the coefficient of elasticity of a commodity is 0.4 .What percentage change in supply will take place if its price rises by 20%

Answer 1

$\bf\underline{Given :-}$

Elasticity of supply (Es) = 0.4

% change in price = (+) 20%

% change in quantity supplied = ?


$es = \frac{\% \: change \: in \: quantity \: supplied}{\% \: change \: in \: price} \\ \\ 0.4 = \frac{\% \: change \: in \: quantity \: supplied}{20\%} \\ \\ \% \: change \: in \: quantity \: supplied = \frac{20}{0.4} = 50$

$\boxed{Answer = 50}$

Answer 2

Answer:

8

Explanation: