As the price of a packet of peanuts increases by 5 per cent, the quantity supplied of these peanut packets rises by 8 per cent. What is the elasticity of supply for peanut packets ?

Open in App

Solution

$e_{s} = \frac{% Change in Quantity Supplied}{% Change in Price} = \frac{8}{5} = 1.6$
$∴$ Supply for peanut packets is elastic.

Suggest Corrections

Similar questions

The price elasticity of supply of a good is 0.8. Its price rises by 50 per cent. Calculate the percentage increase in its supply.

The supply of a commodity at a price of Rs 20 per unit is 500 units. A 10 per cent rise in its price results in a 15 per cent rise in its supply. Calculate its price elasticity of supply. Is its supply elastic?

Q. Elasticity of supply is found to be

= 2

. Quantity supplied happens to increase by

20

per cent in response to increase in price. Find the new price when the initial price happens to be

R s . 20

per unit.

Q. There are 143 peanuts in a bowl. A worker has to put them equally in 11 packets.
Find the number of peanuts in each packet.

Q. Find elasticity of supply when price increases by

20

per cent and quantity increases from

100

250

units of the commodity.

Join BYJU'S Learning Program

As the price of a packet of peanuts increases by 5 per cent, the quantity supplied of these peanut packets rises by 8 per cent. What is the elasticity of supply for peanut packets ?

es=% Change in Quantity Supplied% Change in Price=85=1.6 ∴ Supply for peanut packets is elastic.

$e_{s} = \frac{% Change in Quantity Supplied}{% Change in Price} = \frac{8}{5} = 1.6$
$∴$ Supply for peanut packets is elastic.