Calculate price elasticity of supply when
(i) The price rises from ₹2 to ₹ 3 for both A and B.
(ii) Why are their elasticities different ?

Explanation

Price Elasticy of Supply `(E_(s)) = (DeltaQ)/(DeltaP) xx (P)/(Q) = (20)/(1) xx (2)/(40)= 1`
`E_(s) = 1` (Sdupply is unitary elastic as `E_(s) = 1`)
`E_(s)` is always positive due to direct relastionship between price and quantity supplied

Price Elasticity of Supplied `(E_(s)) = (DeltaQ)/(DeltaP) xx (P)/(Q) = (20)/(1) xx (2)/(20)= 2`
`E_(s) = 2` (Supply is highly elastic as `E_(s) gt 1`)
`E_(s)` is is alaways positive due to direct relationship between price and quantity suppled ltbr. (ii) Though change in the quantity supplied is same ( 20 units) in both the cases, but elasticites of supply is different as proporationate change in supply in both the cases is different.