Question 40
HardOriginal questionTwo firms supply a market.
| Price (₹) | 10 | 20 | 30 | 40 |
|---|---|---|---|---|
| Firm A supplies | 5 | 10 | 15 | 20 |
| Firm B supplies | 0 | 8 | 16 | 24 |
By what percentage does market supply rise when the price rises from ₹20 to ₹40?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
Market supply: at ₹20, 10 + 8 = 18; at ₹40, 20 + 24 = 44.
Rise = (44 − 18) ÷ 18 × 100 ≈ 144%. Price rose 100%, so supply is elastic here (eₛ ≈ 1.44).
- Concept
- Percentage change in market supply
- Typical timeTypical
- 100 s
- Your timeYours
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