Question 42
MediumOriginal questionThe price of a good rises from ₹10 to ₹12 and the quantity supplied rises from 100 to 130 units. What is the price elasticity of supply?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
% change in quantity supplied = 30 ÷ 100 = 30%. % change in price = 2 ÷ 10 = 20%.
eₛ = 30 ÷ 20 = 1.5: elastic supply.
- Concept
- Computing elasticity of supply
- Typical timeTypical
- 70 s
- Your timeYours
- —
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