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 supply. Is its supply elastic ?
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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`
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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.
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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).
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When price of a good falls by 10 percent , its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percenta
`E_(P)=(%" change in Qty . Demanded")/(% " change in price")=((10)/(40)xx10)/(-10)=(25)/(-10)=(-)2.5`
2 Answers 1 views
When price of a commodity X falls by 10 percent , its demand rises from 150 units to 180 units. Calculate its price elasticity of demand . How much sh
`E_(P)=(% " change in " Q_(d))/(% " change in P")=((30)/(150)xx100)/(-10)=(-2)` `-2=((60)/(150)xx100)/(%" change in price")` `%` change in Price `=(60)/(150)xx100xx(1)/(-2)=-20%`.
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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
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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
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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
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 b
`E_(s) =(%"Change in supply")/(%"change in price")=(25)/((1)/(5)xx100)=(25)/(20)=1.25` Supply is elastic because `E_(s)gt 1`.
2 Answers 7 views
The price elasticity of supply of a commodity Y is half the price elasticity of supply of commodity X. 16 percent rise in price of X results in 40 per
`E_(s) ` of X `=(40)/(16)=2.5` `therefore " "E_(s)` of Y =`2.5 div 2=1.25` `E_(s)` of Y `=(%"change in supply")/(% "change in price")` `1.25=(%"change in supply")/(8)` % change in supply `=8xx1.25=10`...
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