Supply of a good rises from 200 units to 240 units as a result of 20 percent rise in its price.
Supply of a good rises from 200 units to 240 units as a result of 20 percent rise in its price. Calculate its Price Elasticity of Supply.
8 views
1 Answers
Given:
% Change in Price = 20
% Change in Supply = Q1 – Q = 240-200= 40
40/200 x 100 = 20%
es = % Change in Supply/% Change in Price
= 20/20
es = 1
8 views
Answered