Question 52
HardOriginal questionAt ₹50, 200 units are supplied. The elasticity of supply is 2. If the price rises to ₹55, how much is supplied?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
% change in price = 5 ÷ 50 = 10%.
% change in quantity = 2 × 10% = 20%, so supply = 200 × 1.2 = 240.
- Concept
- New quantity from elasticity of supply
- Typical timeTypical
- 100 s
- Your timeYours
- —
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