Question

Total revenue is 400 when the price of the commodity is 2 per unit. When the price rises to 3 per unit, the quantity supplied is 2100 units. Calculate the price elasticity of supply.

Answer 1

Answer:

ANSWER

Given percentage change in price =10 percent

Q=200units;Q =225units;

ΔQ=Q 1

−Q=225−200)=25units

Percentage change in quantity supplied = QΔ ×100=202 ×100=12.5percen

Answer 2

Answer:

$\huge\underline\mathcal\red{AnSWer}$

Given percentage change in price = 10%

Q = 200 units ; Q = 225 units

∆Q = Q¹

Q = 225-200) = 25units