When price of a commodity becomes twice the original price, the quantity supplied increased by an amount equal to 4time of original quantity supplied. Calculate the coefficient of price elasticity of supply .

Explanation

`E_(s) = ("Percentage Change in Supply")/("Percentage change in Price")=(400%)/(100%) = 4`
`E_(s) = 4` (Supply is hghly elasticity as `E_(s) gt 1` )
`E_(s)` is always positive due to direct relatioship between price and quantity supplied.