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The price elasticity of supply is …

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The price elasticity of supply is 2.5. At a price of 5rs.per unit ,the quantity supplied is 300 units .calculate quantity supplied at a price of 4Rs per unit.
  • 2 answers

Mad Hunting Gamer 4 years, 11 months ago

and then by applying the formula of % method to calculate supply we get change in quantity as -150 and to find new quantity we should add change in quantity and original quantity

Mad Hunting Gamer 4 years, 11 months ago

Elasticity of supply= 2.5 Original quantity= 5 Change in price = -1 ( because the price is decreasing from 5 to 4)
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