The quantity supplied of a product increases from 1000 units to 2000 units as the price changes from Rs. 50 to Rs. 60 per unit. Calculate elasticity of supply

Question: The quantity supplied of a product increases from 1000 units to 2000 units as the price changes from Rs. 50 to Rs. 60 per unit. Calculate elasticity of supply

Solution:

P1= Rs. 60, P= Rs. 50, S1=2000 units, S=1000 units

Homework solution

Thus, es represents relatively elastic supply