When the price of a commodity rises by 10% its supply rises by 40 units its elasticity of supply is 1 calculste uts supply at original price
Answers
Answered by
10
Change in price (CnP) = 10
Quantity supplied (QS) = 40
Elasticity (es) = 1
Then, es = % change in QS
---------------------
% change in P
1 = % change in QS
----------------------
10
Therefore , % change in QS = 10 .
Then Supply at original price
= 40 * 10 = 400 units
Quantity supplied (QS) = 40
Elasticity (es) = 1
Then, es = % change in QS
---------------------
% change in P
1 = % change in QS
----------------------
10
Therefore , % change in QS = 10 .
Then Supply at original price
= 40 * 10 = 400 units
Similar questions