12th Class Economics Solved Paper - Economics 2018

  • question_answer
    When the price of a commodity changes from Rs. 4 per unit to Rs. 5 per unit, its market supply rises from 100 units. Calculate the price elasticity of supply elastic? Given reason.

    Answer:

    \[Ed=\frac{P}{Q}\times \frac{\Delta Q}{\Delta P}\]
    \[=\,\,\frac{4}{100}\times \frac{20}{1}\]
    \[=\,\,0.8\]
    It is not elastic, as elasticity is less than one.


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