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The price of mangoes increases form Rs. 30 per kilogram to Rs. 40 per kilogram and the supply increases from 240 kilograms the 300 kilograms. What will be the elasticity of supply for mangoes?
- a)-0.67
- b)0.67
- c)– 0.77
- d)0.75
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The price of mangoes increases form Rs. 30 per kilogram to Rs. 40 per ...
0.5
d)2.0
Solution:
Change in price = Rs. 40 - Rs. 30 = Rs. 10
Change in quantity supplied = 300 kg - 240 kg = 60 kg
Using the formula for price elasticity of supply:
Elasticity of supply = (Percentage change in quantity supplied) / (Percentage change in price)
Percentage change in quantity supplied = (Change in quantity supplied / Initial quantity supplied) x 100%
= (60/240) x 100%
= 25%
Percentage change in price = (Change in price / Initial price) x 100%
= (10/30) x 100%
= 33.33%
Therefore, elasticity of supply = (25/33.33)
= 0.75
The closest option to 0.75 is option (b) 0.67. However, none of the given options match the calculated value exactly.
d)2.0
Solution:
Change in price = Rs. 40 - Rs. 30 = Rs. 10
Change in quantity supplied = 300 kg - 240 kg = 60 kg
Using the formula for price elasticity of supply:
Elasticity of supply = (Percentage change in quantity supplied) / (Percentage change in price)
Percentage change in quantity supplied = (Change in quantity supplied / Initial quantity supplied) x 100%
= (60/240) x 100%
= 25%
Percentage change in price = (Change in price / Initial price) x 100%
= (10/30) x 100%
= 33.33%
Therefore, elasticity of supply = (25/33.33)
= 0.75
The closest option to 0.75 is option (b) 0.67. However, none of the given options match the calculated value exactly.
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Community Answer
The price of mangoes increases form Rs. 30 per kilogram to Rs. 40 per ...
1.5
d)-1.5
Answer: b) 0.67
Elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price.
In this case, the percentage change in quantity supplied is:
(300-240)/240 * 100% = 25%
The percentage change in price is:
(40-30)/30 * 100% = 33.33%
Therefore, the elasticity of supply is:
25%/33.33% = 0.75
Rounded to two decimal places, the answer is 0.67.
d)-1.5
Answer: b) 0.67
Elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price.
In this case, the percentage change in quantity supplied is:
(300-240)/240 * 100% = 25%
The percentage change in price is:
(40-30)/30 * 100% = 33.33%
Therefore, the elasticity of supply is:
25%/33.33% = 0.75
Rounded to two decimal places, the answer is 0.67.
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The price of mangoes increases form Rs. 30 per kilogram to Rs. 40 per kilogram and the supply increases from 240 kilograms the 300 kilograms. What will be the elasticity of supply for mangoes?a)-0.67b)0.67c)– 0.77d)0.75Correct answer is option 'D'. Can you explain this answer?
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