Assume that a business firm supplied 450 units at the price of Rs 4500. The firm has decided to increase the price of the product to Rs 5500. Consequently, the supply of the product is increased to 600 units. Calculate the elasticity of supply.

Question: Assume that a business firm supplied 450 units at the price of Rs 4500. The firm has decided to increase the price of the product to Rs 5500. Consequently, the supply of the product is increased to 600 units. Calculate the elasticity of supply.

Solution:

Eco homework