If a 5% fall in the price of a commodity causes quantity supplied to decrease by 8%, supply is

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When the price of commodity increased by 40% and its quantity demanded falls from 150 to 120 units then the price elasticity of demand for a commodity is?
What does price elasticity of supply measure?
When price of a commodity gets doubled?
Which is characteristic of a product whose demand is elastic?

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Solution : <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C09_S01_020_S01.png" width="80%"> Price Ealsticity of Supply `(E_(s)) = (DeltaQ)/(DeltaP) xx (P)/(Q)` `2 = (500)/(2)xx(10)/(Q) i.e., DeltaQ = 1,250` As price decreases, the quantity suppplied will also decreases. It means New Quantilty = Oringinal Quantity (Q) - Change in Quantity`(DeltaQ)` = 1,250 - 500 = 750 units New uantity = 750 units

When the price of commodity increased by 40% and its quantity demanded falls from 150 to 120 units then the price elasticity of demand for a commodity is?

Answer. Ed = 1/2 . elasticity of demand is less than unity.

What does price elasticity of supply measure?

Key points. Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.