Class 11 Exam  >  Class 11 Questions  >  At a price of 40 per unit , the quantity supp... Start Learning for Free
At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer?
Most Upvoted Answer
At a price of 40 per unit , the quantity supplied of a commodity is 40...
Explanation:
Price elasticity of supply is the responsiveness of the quantity supplied of a commodity to changes in its price.

Formula:
Price elasticity of supply = % change in quantity supplied / % change in price

Given:
Price = 40
Quantity supplied = 400
Price change = 10%
Quantity change = 36

Calculations:
Initial quantity supplied = 400 units
New quantity supplied = 400 - 36 = 364 units
% change in quantity supplied = (364-400)/400 x 100% = -9%
% change in price = -10%
Price elasticity of supply = -9/-10 = 0.9

Interpretation:
The price elasticity of supply is 0.9 which means that the quantity supplied is relatively inelastic to changes in price. This implies that a 10% decrease in price only leads to a 9% decrease in quantity supplied.
Community Answer
At a price of 40 per unit , the quantity supplied of a commodity is 40...
Attention Class 11 Students!
To make sure you are not studying endlessly, EduRev has designed Class 11 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 11.
Explore Courses for Class 11 exam

Top Courses for Class 11

At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer?
Question Description
At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer?.
Solutions for At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer? in English & in Hindi are available as part of our courses for Class 11. Download more important topics, notes, lectures and mock test series for Class 11 Exam by signing up for free.
Here you can find the meaning of At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer? defined & explained in the simplest way possible. Besides giving the explanation of At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer?, a detailed solution for At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer? has been provided alongside types of At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer? theory, EduRev gives you an ample number of questions to practice At a price of 40 per unit , the quantity supplied of a commodity is 400 units . when it's price falls by 10% it's quantity supplied falls by 36 units calculate price elasticity of supply. pls answer? tests, examples and also practice Class 11 tests.
Explore Courses for Class 11 exam

Top Courses for Class 11

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