When price of a commodity falls from Rs 12 per unit to Rs 9 per unit ,the producer supplies 75 percent less output. Calculate price elasticity of supply.

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Solution

Dear Student,
Elasticity of supply = %change in quantity/ %change in price
Here, % change in price = $\frac{9 - 12}{12}$ x 100 = -25%
and % change in quantity = -75%
Elasticity of supply = $\frac{- 75 %}{- 25 %}$ = 3

Regards

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When price of a commodity falls from Rs 12 per unit to Rs 9 per unit ,the producer supplies 75 percent less output. Calculate price elasticity of supply.

Dear Student, Elasticity of supply = %change in quantity/ %change in price Here, % change in price = 9 - 1212 x 100 = -25% and % change in quantity = -75% Elasticity of supply = -75%-25% = 3 Regards

Dear Student,
Elasticity of supply = %change in quantity/ %change in price
Here, % change in price = $\frac{9 - 12}{12}$ x 100 = -25%
and % change in quantity = -75%
Elasticity of supply = $\frac{- 75 %}{- 25 %}$ = 3

Regards