When price of a good increases from Rs. 15 per unit to Rs.19 per unit, its quantity supplied increases from 75 units to 95 units. Calculate the price elasticity of supply.

Open in App

Solution

Given, $P = R s .15; P_{1} = R s .19;$
$Δ P = P_{1} - P = R s .19 - R s .15 = R s .4$
$Q = 75 u n i t s; Q_{1} = 95 u n i t s;$
$Δ Q = Q_{1} - Q = (95 - 75) = 20 u n i t s$
Price elasticity of supply $E_{s} = \frac{P}{Q} \times \frac{Δ Q}{Δ P}$
$= \frac{15}{75} \times \frac{20}{4} = 1$
Price elasticity of supply $= 1$ (one)

Suggest Corrections

Similar questions

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.

When the price of a good rises from Rs. 8 per unit to Rs. 10 per unit, the producer supplies 40 more units. Price elasticity of supply is 2. What is the quantity supplied before the price change? Calculate.

Q. When price of a good falls from

R s . 20

R s . 10

per unit, producer reduces supply from

100

units to

50

units. 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.

Price elasticity of supply for a commodity is 5. When price of the commodity rises from Rs. 9 per unit to Rs. 10 per unit, supply rises by 25 units. Calculate quantity supplied at Rs. 9 per unit.

Join BYJU'S Learning Program

When price of a good increases from Rs. 15 per unit to Rs.19 per unit, its quantity supplied increases from 75 units to 95 units. Calculate the price elasticity of supply.

Given, P=Rs.15;P1=Rs.19;ΔP=P1−P=Rs.19−Rs.15=Rs.4Q=75units;Q1=95units;ΔQ=Q1−Q=(95−75)=20unitsPrice elasticity of supply Es=PQ×ΔQΔP=1575×204=1Price elasticity of supply =1 (one)