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 percent rise in its supply. If the price of Y falls by 8 percent, calculate the percentage fall in its supply.
1 Answers
Talk Doctor Online in Bissoy App
Supply of commodity is 1200 units at a price of Rs.12/unit. If ths supply of commodity increases to 1600 units, what will be the new price of commodit
`{:(" P 12"),(" P"_(1)" ?,"),(ulbar(Delta"P -1")):}" "{:("Q 1200"),("Q"_(1)" 1600"),(ulbar(DeltaQ" ? ")):}` `P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)" or "2=(12)/(1200)xx(400)/(DeltaP)` `DeltaP=2` `DeltaP=P_(1)-P" or "2=P_(1)=-12` `P_(1)=14`
2 Answers 1 views
The price elasticity of supply of commodities X and Y is equal. The price of X falls from Rs.10 to Rs.8 per unit and supply falls by 16 percent. The p
Let us calculate `P.e_(S)` for commodity X ltbr. `P=10," "P_(1)=8," "DeltaP=-2` `%DeltaP=(-2)/(10)xx100=-20%` `%DeltaS=-16%` given `"Hence "P.e_(S)=(%"Change in Quantity supplied"_(X))/(%"Change in price"_(X))=((-)16%)/((-)20%)=0.8` `P.e_(S)" of X"=P.e_(S)" of Y (given)"` Hence `P.e_(S)` of...
2 Answers 1 views
A 5 percent fall in the price of X leads to a 10 percent rise in demand for X. A2 per cent reise in the price of Y leads to a 6 percent fall in demand
`E_(P) " of "X=(10)/(-5)=(-)2` `E_(P) " of "Y=(-6)/(2)=(-)3`
2 Answers 1 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
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%`.
2 Answers 1 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
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
The price elasticity of supply of a commodity is 2. When its price falls from Rs. 10 to Rs. 8 per unit, its quantity supplied falls by 500 units . Cal
`E_(s)=(P)/(Q)xx(DeltaQ)/(DeltaP),2=(10)/(Q)xx(-500)/(-2),4Q=5000,Q=1250` Supply at `Rs 8=Q+ DeltaQ=1250 +(-500)=750` units.
2 Answers 4 views