The price of a commodity is Rs. 5 per unit and its quantity suppled is 600 units. If its price rises to Rs. 6 per unit , its quantity supplied rises by 25 percent. Calculate its price elasticity of supply.
1 Answers
Talk Doctor Online in Bissoy App
If market price of a commodity is Rs.5/unit, a seller is willing to sell 600 units of the commodity. When the price rises to Rs.6/unit he is willing t
`{:("P 5"),(P_(1)" 6,"),(ulbar(DeltaP" 1")):}" "{:("Q 600"),(Q_(1)" 800"),(ulbar(DeltaQ" 200")):}" "P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(5)/(600)xx(200)/(1)=1.67` Ans. `P.e_(S)=1.67`
2 Answers 1 views
Price elasticity of supply is 2.5. At a price of Rs.5/unit its quantity supplied is 300 units. Calculate the quantity supplied at a price of Rs.4/unit
`{:(" P 5"),(" P"_(1)" 4,"),(ulbar(Delta"P -1")):}" "{:("Q 300"),("Q"_(1)" "?),(ulbar(DeltaQ" ?")):}` `P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)" or "2.5=(5)/(300)xx(DeltaQ)/(-1)` `DeltaQ=-150` `DeltaQ=Q_(1)-Q" or "-150=Q_(1)-300` `Q_(1)=150`
2 Answers 1 views
At Rs.12/unit, quantity supplied of a commodity is 500 units. When its price riese to Rs.15/unit, its quantity supplied rises to 650 units. Calculate
`{:(" P 12"),(" P"_(1)" 15"),(ulbar(DeltaP" 3")):}" "{:("Q 500"),("Q"_(1)" 650"),(ulbar(DeltaQ" 150")):}" "P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(12)/(500)xx(150)/(3)=1.2` Yes, supply is elastic as it is greater than one.
2 Answers 3 views
At a price of Rs. 50 per unit the quantity demanded of a commodity is 1000 units . When its price falls by 10 percent , its quantity demanded rises to
`E_(P)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(50)/(1000)xx(80)/(-5)=(-)(4)/(5)=(-)0.8` The demand is inelastic because the absolute value of clasticity is less than 1 (sign ignored).
2 Answers 2 views
The quantity demanded of a commodity rises from 800 units to 850 units when its price falls from Rs. 20 per unit to Rs. 19 per unit . Calculate its el
`E_(P)=(%"change in " Q_(d))/(% " change in P")=((50)/(800)xx100)/(-(1)/(20)xx100)=(-)1.25.`
2 Answers 2 views
At price of Rs. 8 per unit, the quantity supplied of a commodity is 200 units. Its price elasticity of supply is 1.5 . If its price rises to Rs. 10 pe
`E_(s)=(P)/(Q_(s))xx(DeltaQ_(s))/(DeltaP)` `1.5=(8)/(200)xx(DeltaQ_(s))/(2)` `8DeltaQ_(s)=600` `DeltaQ_(s)=75` New `Q=Q_(s)+DeltaQ_(s)=200+75=275` units
2 Answers 3 views
The price elasticity of supply of a commodity is 2.5 . At a price of Rs. 5 per unit, its quantity supplied is 300 units. Calculate its quantity suppli
`E_(s)=(P)/(Q_(s))xx(DeltaQ_(s))/(DeltaP)` `2.5=(5)/(300)xx(DeltaQ_(s))/(-1)` `-750=5DeltaQ_(s)` `DeltaQ_(s)=-150` New `Q=Q_(s)+ DeltaQ=300+(-150)=300-150=150` units
2 Answers 2 views
The price of a commodity is Rs.12 per unit and its quantity supplied is 500 units. When its price rises to Rs. 15 per unit , its quantity supplied ris
`E_(s)=(P)/(Q_(s))xx(DeltaQ_(s))/(DeltaP)=(12)/(500)xx(150)/(3)=1.2` Yes, the supply is elastic because `E_(s) gt 1`
2 Answers 2 views
When the price of a commodity falls from Rs. 10 per unit to Rs. 9 per unit , its quantity supplied falls by 20 percent . Calculate its price elesticit
Percent change in price `=(-1)/(10)xx100=-10%` Percent change in supply =-20% `E_(s) =("Percentage change in supply")/("Percentage change in price")=(-20)/(-10)=2`
2 Answers 2 views
Due to a 10 percent rise in the price of a commodity , its quantity supplied rises from 400 units to 450 units. Calculate its price elasticity of supp
`E_(s)=(%"Change in supply")/(% "Change in price ")=((50)/(400)xx100)/(10)=((25)/(2))/(10)=(25)/(10)=1.25` Supply is elastic because `E_(s) gt 1`.
2 Answers 1 views