If price of yams decreases from N15.00 per tuber to N13.50 and the quantity supplied decreases by 20%. What is the elasticity of supply?
2.00
0.50
1.50
1.00
Explanation
Video Explanation
No video available
Post your Contribution
Discussions (13)
Please Myschool the correct answer is 2.0
your whole calculation here is terribly wrong.
please correct it.
it's %change in quantity supplied ÷ %change in price.
Not the other way round.
Here are the inputs:
old price is N15.00
new price is N13.50
% change in P = 15.00 -13.50 ÷15.00 multiplied by 100 which is equal to 10%
and since the % change in QS has already been given as 20%
Elasticity of supply (using the formula) =20%÷10% which is equal to 2.
hence Elasticity of supply is 2.
and in furtherance, supply is elastic.
please make corrections. Thank You.
The coefficience of elascticity is measured as (percentage change in quantity supplied/demanded) / (percentage in price)... that is why elasticity is termed “the degree of responsive of demand/supply, to a change in price.” Not the other way round...
so, it is (%Change in qty ss)/(%Change in price)...
by calculation, percentage in price is ((15-13.5)/15)*100... (1.5/15)*100... 0.10*100= 10%
Since we already have the percentage change in quantity ss as 20% and the formula is (%change in qty ss)/(%chnage in price)... that leaves the answer to be 20/10= 2...(i.e option ‘A’ is correct), not B.
the answer is 2. elasticity of supply is percentage change in qs over percentage change in p, follow the formula to get the correct answer. the correct answer is two
Very correct, it goes like ds per% change in price divided by % change in quantity supply
15.00-13.50=1.5
1.0/13.50(100)=11.11%/20%=0,555555555=0.5ans
Very correct, it goes like ds per% change in price divided by % change in quantity supply
15.00-13.50=1.5
1.5/13.50(100)
=11.11%/20%=0.55555..
=0.5ans
ry correct, it goes like ds per% change in price divided by % change in quantity supply
15.00-13.50=1.5
1.5/13.50(100)
=11.11%/20%=0.55555..
=0.5ans
