Home
Class 11
ECONOMICS
At Rs.12/unit, quantity supplied of a co...

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 price elasticity of supply. Is supply elastic ?

Text Solution

Verified by Experts

`{:(" 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.
Promotional Banner

Topper's Solved these Questions

  • THEORY OF SUPPLY : LAW OF SUPPLY AND ELASTICITY OF SUPPLY

    RADHA BHUGANA|Exercise MCQ|12 Videos

  • THEORY OF SUPPLY : LAW OF SUPPLY AND ELASTICITY OF SUPPLY

    RADHA BHUGANA|Exercise OBJECTIVE TYPE QUESTIONS|11 Videos

  • THEORY OF SUPPLY : LAW OF SUPPLY AND ELASTICITY OF SUPPLY

    RADHA BHUGANA|Exercise LET US RECAPITULATE|9 Videos

  • THEORY OF DEMAND

    RADHA BHUGANA|Exercise UNSOLVED NUMERICALS|7 Videos

Similar Questions

Explore conceptually related problems

The price of a commodity is ₹12 per unit and its quantity supplied is 500 units. When its price rises to ₹15 per units, its quantity supplied rises to 650 units. Calculate is price elasticity of supply. Is supply elastic?

Total revenue is Rs.400 when price of a commodity is Rs.2 per unit. When its price rises to Rs.3 per unit, the quantity supplied is 300 units. Calculate price elasticity of supply.

At a price of 6 per unit, the quantity supplied of a commodity is 200 units. If per unit, the quantity supplied rises by 20%. Calculate the price elasticity of supply.

At a price of 40 per unit, the quantity supplied of a commodity is 400 units. When its price falls by 10 per cent, its quantity supplied falls by 36 units. Calculate its elasticity of supply.

At a price of 10 per unit, the quantity supplied of a commodity is 400 units. If its per unit and the quantity supplied rises by 10 per cent, calculate its price elasticity.

Total revenue is ₹400 when the price of the commodity is ₹2 per unit. When price rises to ₹3 per unit, the quantity supplied is 300 units. Calculate the price elasticity of supply.