If the price of apples rises from Rs. 30 per ...

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If the price of apples rises from Rs. 30 per kg to Rs. 40 per kg and the supply increases from 240 kg to Rs. 300 kg. Elasticity of supply is

• a)
0.75

• b)
0.77

• c)
-0.67

• d)
-0.77

Arc Ed = [(Qd2 – Qd1) / midpoint Qd] ÷ [(P2 – P1) / midpoint P]

= [(300 – 240) / 270] ÷ [(40 – 30) / 35]

= 0.222/0.285

= 0.77

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If the price of apples rises from Rs. 30 per kg to Rs. 40 per kg and the supply increases from 240 kg to Rs. 300 kg. Elasticity of supply isa)0.75b)0.77c)-0.67d)-0.77Correct answer is option 'B'. Can you explain this answer?

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When question asks to find out elasticity of supply on given point ,then

we'll use general formula

as here the question wants us to find elasticity of supply between two prices

so using arc method formula is correct