when the price of a commodity falls from rupees 10 per unit the quantity supplied falls by 20%. calculate the price elasticity of

2 thoughts on “when the price of a commodity falls from rupees 10 per unit the quantity supplied falls by 20%. calculate the price elasticity of”

1. Answer:

   Step-by-step explanation:

   Here Given that :-

   P = Rs 10

   P1 = Rs 9

   Percentage change in quantity supplied = -20%

   Now as we know that

   So we have already given%tage change in quantity supplied. Now we have to find percentage change in price of the commodity.

   %tage change in price= ×100 .

   ∆P = P1 – P

   ∆P = 9 – 10

   ∆P = -1

   percentage change in price = ×100 .

   = -10%

   Es =

   Es = 2

   Hence Es is greater than unity refers supply is elastic.

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2. Answer:

   Percent change in price `=(-1)/(10)xx100=-10%`

   Percent change in supply =-20%

   `E_(s) =(“Percentage change in supply”)/(“Percentage change in price”)=(-20)/(-10)=2`

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