Question

Due to decrease in price form Rs. 15/unit to Rs.10/unit, supply of a commodity falls from 100 units to 50 units. Find price elasticity of supply.

Answer 1

`{:(" P 15"),(" P"_(1)" 10"),(ulbar(DeltaP" -5")):}" "{:("Q 100"),("Q"_(1)" 50"),(ulbar(Delta-50)):}" "P.e_(S)=(15)/(100)xx(-50)/(-5)((P)/(Q)xx(DeltaQ)/(DeltaP))`
`P.e_(S)=1.5` (Greater than unitary elastic.)