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Question
What is the price elasticity of supply formula?
What is the price elasticity of supply formula?
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Solution
The formula for calculating price elasticity of supply is as follows
Price elasticity of supply, eS = Percentage change in quantity supplied / Percentage change in price
eS = ∆Q/Q × 100 / ∆P/P × 100
= ∆Q/Q × P/∆P
Where ∆Q is the change in the quantity of the commodity supplied to the market place as market cost price changes by ∆P.
Also read:
- Price Elasticity of Supply
- Income Elasticity of Demand Formula
- Elasticity of Demand
- Price Elasticity of Demand Formula
Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.
The formula for calculating price elasticity of supply is as follows
Price elasticity of supply, eS = Percentage change in quantity supplied / Percentage change in price
eS = ∆Q/Q × 100 / ∆P/P × 100
= ∆Q/Q × P/∆P
Where ∆Q is the change in the quantity of the commodity supplied to the market place as market cost price changes by ∆P.
Also read:
- Price Elasticity of Supply
- Income Elasticity of Demand Formula
- Elasticity of Demand
- Price Elasticity of Demand Formula
Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.
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