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The elasticity of supply measures
  • a)
    The quantity supplied at a price
  • b)
    The initial quantity supplied at the initial price
  • c)
    The degree of responsiveness of quantity supplied at a particular price
  • d)
    The difference in quantity supplied when price fall
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
The elasticity of supply measuresa)The quantity supplied at a priceb)T...
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.
Community Answer
The elasticity of supply measuresa)The quantity supplied at a priceb)T...
Ans:~ELASTICITY of SUPPLY measures the DEGREE of RESPONSIVENESS of QUANTITY SUPPLIED to a CHANGE in own PRICE of the COMMODITY.~It is also defined as the PERCENTAGE CHANGE in QUANTITY SUPPLIED divided by percentage CHANGE in PRICE.~FORMULA :ES = % change in quantity supplied/% change in priceSymbolically,ES = ∆Q/Q ÷ ∆P/P = ∆Q/∆P × P/Q
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The elasticity of supply measuresa)The quantity supplied at a priceb)The initial quantity supplied at the initial pricec)The degree of responsiveness of quantity supplied at a particular priced)The difference in quantity supplied when price fallCorrect answer is option 'A'. Can you explain this answer?
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