CA Foundation Exam  >  CA Foundation Questions  >  The supply function is given as Q=_100 10p. F... Start Learning for Free
The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3?
Most Upvoted Answer
The supply function is given as Q=_100 10p. Find the elasticity using ...
To calculate the elasticity of supply using the point method, we need to use the formula:

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

Given that the supply function is Q = 100 + 10p, where Q represents quantity supplied and p represents price, we can calculate the elasticity using the point method.

Step 1: Determine the initial price and quantity supplied
Let's assume the initial price is p1 = 10. Substituting this value into the supply function, we can find the initial quantity supplied:
Q1 = 100 + 10(10) = 100 + 100 = 200

Step 2: Determine the new price and quantity supplied
Let's assume the new price is p2 = 15. Substituting this value into the supply function, we can find the new quantity supplied:
Q2 = 100 + 10(15) = 100 + 150 = 250

Step 3: Calculate the percentage change in quantity supplied
The percentage change in quantity supplied is given by the formula:
% Change in Quantity Supplied = (Q2 - Q1) / Q1 * 100

Substituting the values, we get:
% Change in Quantity Supplied = (250 - 200) / 200 * 100 = 50 / 200 * 100 = 25%

Step 4: Calculate the percentage change in price
The percentage change in price is given by the formula:
% Change in Price = (p2 - p1) / p1 * 100

Substituting the values, we get:
% Change in Price = (15 - 10) / 10 * 100 = 5 / 10 * 100 = 50%

Step 5: Calculate the elasticity of supply
Finally, we can calculate the elasticity of supply using the formula:
Elasticity of Supply = (% Change in Quantity Supplied) / (% Change in Price)

Substituting the values, we get:
Elasticity of Supply = 25% / 50% = 0.5

Since the elasticity of supply is a positive value less than 1, we can conclude that the supply is inelastic.

Therefore, the correct option is d) 3.
Explore Courses for CA Foundation exam
The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3?
Question Description
The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3?.
Solutions for The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3? defined & explained in the simplest way possible. Besides giving the explanation of The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3?, a detailed solution for The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3? has been provided alongside types of The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3? theory, EduRev gives you an ample number of questions to practice The supply function is given as Q=_100 10p. Find the elasticity using point method . When price is '15. options a) 4 b)_3 c)_5. d)3? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev