When price of a good falls from $R s . 20$ to $R s . 10$ per unit, producer reduces supply from $100$ units to $50$ units. Calculate price elasticity of supply.

Open in App

Solution

Given, $P = R s . 20; P_{1} = R s . 10; △ P = P_{1} - P = R s . 10 - R s . 20 = (-) R s . 10$
$Q = 100 u n i t s; Q_{1} = 50 u n i t s; △ Q = Q_{1} - Q = (50 - 100) u n i t s = (-) 50 u n i t s$
Price elasticity of supply $(E_{S}) = \frac{P}{Q} \times \frac{△ Q}{△ P}$
$= \frac{20}{100} \times \frac{- 50}{- 10} = 1$
Price elasticity of supply $= 1$ .

Suggest Corrections

Similar questions

Q. A producer supplies

100

units of a good at a price of

R s . 20

per unit. Price elasticity of supply is

2

. At what price will he supply

50

units? Calculate.

Q. When price of a good rises from

R s . 8

per unit to

R s . 10

per unit, producer supplies

40

units more. Price elasticity of supply is

2

. What is the quantity supplied before the price change? Calculate.

Q. When price of a good rises from

R s . 10

R s . 12

per unit, the producer supplies

10

per cent more. Calculate price elasticity of supply.

Q. The price elasticity of supply of a good is

4

. When its price falls from Rs. 10 per unit to Rs. 8 per unit, its quantity supplied falls by 400 units. Calculate the new quantity at the reduced price.

When the price of a good rises from Rs. 20 per unit to Rs. 30 per unit, the revenue of the firm producing the good rises from Rs. 100 to Rs. 300. Calculate the price elasticity of supply.

Join BYJU'S Learning Program

When price of a good falls from Rs.20 to Rs.10 per unit, producer reduces supply from 100 units to 50 units. Calculate price elasticity of supply.

Given, P=Rs.20;P1=Rs.10;△P=P1−P=Rs.10−Rs.20=(−)Rs.10Q=100 units;Q1=50 units;△Q=Q1−Q=(50−100)units=(−)50 unitsPrice elasticity of supply (ES)=PQ×△Q△P=20100×−50−10=1Price elasticity of supply =1.

When price of a good falls from $R s . 20$ to $R s . 10$ per unit, producer reduces supply from $100$ units to $50$ units. Calculate price elasticity of supply.