The ratio of elasticity of supply …

Price elasticity of supply (PES) measures the responsiveness of quantity supplied to a change in price. It is necessary for a firm to know how quickly, and effectively, it can respond to changing market conditions, especially to price changes.

{tex}\frac{\mathrm{E}_{\mathrm{SA}}}{\mathrm{E}_{\mathrm{SB}}}=\frac{1}{1.5}{/tex}...(i)
E_SA {tex}=\frac{\% \text { Change in } Q s \text { of } A}{\% \text { Change in Price of } A}{/tex}
E_SA{tex}=\frac{40}{20}{/tex}= 2 Put in eq. (i)
{tex}\frac{2}{\mathrm{E}_{\mathrm{SB}}}=\frac{1}{1.5}{/tex}
2{tex}\times{/tex}1.5 = E_SB
3.0 = E_SB
E_SB{tex}=\frac{\% \text { Change in } Q s \text { of } B}{\% \text { Change in Price of } B}{/tex}
% Change in Q_Sof B{tex}=\frac{(11-10)}{10} \times{/tex}100 = 10%
3{tex}=\frac{\% \text { Change in } Q s \text { of } B}{\% \text { Change in Price of } B}{/tex}
3{tex}=\frac{\% \text { Change in } Q s \text { of } B}{10}{/tex}
30 = % Change in Q_S of B.