question_answer

A 15 per cent rise in the price of a commodity raises its supply from 300 units to 345 units. Calculate its price elasticity of supply.

Answer:

\[{{E}_{s}}=\frac{\text{Percentage}\,\,\text{change}\,\,\text{in}\,\,\text{quantity}\,\,\text{supplied}}{\text{Percentage}\,\,\text{change}\,\,\text{in}\,\,\text{price}}\]

\[=\frac{\frac{345-300}{300}\times 100}{15}=\frac{\frac{45}{300}\times 100}{15}=\frac{15}{15}=1\]

\[{{E}_{s}}\]= 1