The price of a good changes from 10 to 20 and quantity supplied changes from 100 to 150 - What is the elasticity of supply-

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Standard XI

Economics

Price Elasticity of Supply

The price of ...

Question

The price of goods changes from 10 to 20 and the quantity supplied changes from 100 to 150. What is the elasticity of supply?

0.25

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0.5

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Solution

The correct option is C 0.5
%change in price = $\frac{20 - 10}{10} \times 100 = 100 %$

%change in quantity = $\frac{150 - 100}{100} \times 100 = 50 %$

$E l a s t i c i t y = \frac{50}{100} = 0.5$

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The price of goods changes from 10 to 20 and the quantity supplied changes from 100 to 150. What is the elasticity of supply?

The correct option is C 0.5%change in price = 20−1010×100=100% %change in quantity = 150−100100×100=50% Elasticity=50100=0.5

The correct option is C 0.5
%change in price = $\frac{20 - 10}{10} \times 100 = 100 %$

%change in quantity = $\frac{150 - 100}{100} \times 100 = 50 %$

$E l a s t i c i t y = \frac{50}{100} = 0.5$