If a firm produce 20 units of commodity at price of ₹10, and when price increase by 5 and units by 5 , calculate the elasticity of supply Es



Pls Help Me ASAP -;-"​

Answers

Answer 1

Answer:

[tex] \: [/tex]

Let, P = ₹ 10, P1 = ₹ 15

Q = 20 ,. Q1 = 25

∆Q = 5 ,. ∆P = 5

from Proportionate method :

Es → ∆Q/∆P × P/Q

→ 5/5 × 10/20

→ 1 × 1/2

→ 1/2 = 0.5

So, The the Es = 0.5 (Inelastic)


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) What is the price before tax of the

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