If the quantity supplied of a commodity increases from 20...
If the quantity supplied of a commodity increases from 20 to 30 units when there is an increase in price from N4 to N5, the elasticity of supply is
4
1
2
5
Correct answer is C
Percentage change in quantity supplied = (Change in quality supplied ÷ Old quantity supplied ) × 100
(30 – 20) ÷ 20 × 100
(10 ÷ 20) × 100 = 50%
Percentage change in price
(Change in price ÷ Old price )× 100
((5 – 4) ÷ 4) × 100
¼ × 100 = 25%
Therefore, the coefficient of price elasticity of supply is
Percentage change in quantity supplied ÷ Percentage change in price
50% ÷ 25% = 2
Deflation is a persistent fall in the general price level and is usually caused by ...
The lender of last resort in the banking system is the ...
One of the fundamental economic problem of every society is ...
Which of the following industries will add more value to primary products? ...
Stocking small quantities of a variety of goods is a function of the ...
A change in supply implies a ...
In estimating the national income of a country, the three approaches usually adopted are the ...
Price fixed above the equilibrium is to ...
When a country's population is experiencing increasing returns, that country is said to be ...
Guided deregulation as currently practised in Nigeria implies that ...