asked 197k views
1 vote
find out price elasticity of supply when 20% change in price of the commodity results change in supply 40%.​

asked
User Sevon
by
8.1k points

1 Answer

2 votes

Answer:the price elasticity of supply in this scenario is 2.

Explanation:

Price Elasticity of Supply = (% Change in Quantity Supplied) / (% Change in Price)

In this case, we are given that there is a 20% change in price, resulting in a 40% change in supply. Let's plug these values into the formula:

Price Elasticity of Supply = (40% / 20%) = 2

Therefore, the price elasticity of supply in this scenario is 2.

answered
User Sisimh
by
8.1k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.