a
21. The coefficient of elasticity of supply of a commodity is 1. Its supply is 500 units at price of? 10
What wil be the supply of this commodity when its price falls to 8 per unit?
per unit.
(400 units
22. The supply curve of commodity 'A'is astraight line parallel to Y-axis. If its supply is 20 units at the
?10per unit, then what willbe its supply when price rises by 2per unit? price of
{Supply of commodity 'A' will remain fixedat 20 units as its supply is perfectlyi
23. The price elasticity of supply of a good is 2. If the percentage change in its price is 5%, fnd the inelastic
change in its quantity supplied? percent(10%,age
24. The price elasticity of supply of acommodity is 0.5. The percentage change in quantity supplied is 4% Wha
is the percentage change in price? {8%;
25. The price elasticity of supply of commodity Xis twice the price elasticity of supply of commodity Y.if pice
of Xfalls by 10% and that of Yfalls by 20%, calculate percentage fall in supply of commodity Xand Y#
commodity Yhas unitary elasticsupply.
(Falin Supply ofcommodityX=206; Fall in Supply of commodity Y=209%.
26. The price of Dairy Milk chocolate rises by 20% and that of Nestle Bar falls by 6%. Asa result, supply of Dairy
Milk rises from 20,000 to 30,000units. Calculate the percentage fall in supply of Nestle Bar if both the
chocolates have equal price elasticity of supply. {1 59%)
27. The price of a commodity rises by 20%, which leads to an increase in supply by 20 units. If price elasticity
is 2, calculate initial and final supply of the commodity. lnitial Supply =50 units; Final Supply =70 units
28. If ratio of change in quantity (AQ) to original quantity (Q) is 0.4 and elasticity of supply is 1.25, calculate the
percentage change in price. (322%6)
29. The price elasticity of supply of commodity Yis half the price elasticity of supply of commodity X.
16 per cent rise in the price Xresults in a40 per cent rise in its supply. If the price of Yfalls by 8per cent,
calculate the percentage fall in its supply. {109%}
Calculation of Price Elasticity of Supply (When total receipts are given)
30. Afirm received R2,000, when price of the commodity was 40 per unit. The revenue increased to
73,000,when price increased to 50 per unit. Calculate the price elasticity of supply? {E,= 0.8:
31. Thereceipts of afirm are 6,000 when the price of agood is 100 per unit. When price increases to i120
per unit, the receipts increase to? 7,800. What is the price elasticity of supply? E, =0.41}
32. Total revenue is 400when the price of the commodity is 2per unit. When price rises to?3 per unit, the
quantity supplied is 300 units. Calculate the price elasticity of supply. (E =1
33. The total receipts of a firm gets doubled due to a 20% rise in price of commodity X. If the original supp)y
was 30 units at aprice of? 100,calculate price elasticity of supply. Also calculate quantity at the increased
price. {E, =3.33; Quantity at the increased price (or New Quantity) =50 units:
Miscellaneous Practicals
34. The price of acommodity is ? 10per unit and total revenue from it is 1,000. Its price elasticity ofsupply
{R828)
0.8. Its price falls by 10 percent. Calculate the total revenue at the reduced price.
35. When the price of a commodity rises by 10 percent, its supply rises by 40 units. Its elasticity of supply
(400units
Calculate its supply at the original price.
36. When the price of acommodity falls from ? 10 per unit to 9 per unit, total revenue from it falls
1,200to 918.Calculate its elasticity of supply.
,000 unitsof aproducttat price of 10 per unit. Its price
Ahn
sels
hm, beable sell if price falls to 7.50 per unit?
to elastlcityof supply is 3. How mary units
the (250 units!
wll
price ofa commodityrises from 10 to |
astic
Whenityofsupplyis 2. Calculateelts quantitysuppled atpertheunit,
the its quantity
increased price.supplied by 100 units. Its price
i600 units
supplies500units of agood at a price
A h sn of5per unit. The price elasticity of supply of the
prkewillthe firm supply 700 units? good is 2.
what
At
supplies 200units of a good at 10 per unit. Price
supplyat
11 elastlcity of supply is 2. How many will the
producer (240 unitsh
, Whentheprice of a goodirises from 20 per unit to 30 per unit, the revenue of the hrrn producing this
govdrisesfrom R100to 300,,Calculate the price elasticity of supply.
IPie Eastcity ofSupply (E)-21
revenuerises from 400to 500when the price of its product
4hrm's rises from ? 20 per unit to? 25 per
Calculatethe price elasticity of supply.
unit. IPrice Elastiity of Supply (E ) 0
Thepriceelasticitycofsupply of agood is 0.8. Its price rises by 50 percent. Calculate the percentage increase
initssupply. (supply willincrease by 4096;
uAhrmsupplies 10 units ofa good at a price of 5per unit. Price elasticity of supply is 1.25. What quantity
firm supply at a price of? ; 7 per unit?
willthe {New Supply 15 units
The priceelasticity of supply of a commodity is 2.0 Afirm supplies 200 units of it at a price of ?8 per unit.
units?
Atwhat price will it supply 250 iNew Pr1ce -9
46. A15 percentrise in the price of acommodity raises its supply from 300 units to 345 units. Calculate its price
elasticity ofsupply. (Price Elasticity of Supply(E)=1!
Dice elasticity of supply for acommodity is5. When price of thecommodity rises from9 per unit to ? 10
ner unit, supply rises by 25 units, Calculate quantity supplied at9 per unit.
(Quantity supplied at 9 per unit =45 units
A8 At aprice of 10 per unit the supply of a good is 80 units. When its price rises to? 12 per unit, its supply
rises by 20 percent. Calculate price elasticity of supply. (Price Elasticity ofSupply(E) = 1}
19, 10 percent increase in the price of a good raises its supply from 150 units to 180 units. Calculate its price
elasticity of supply. (Price Elasticity of Supply (E) =2)
50. Supply of a good rises from 200 units to 240 units as a result of 20 percent rise in its price. Calculate its price
elasticity of supply. (Price Elasticity of Supply (E)=1;
51. When price of acommodity rises from 5 to6 per unit, total revenue increases from 1,000 to?1,200.
Calculate its price elasticity of supply. (Price Elasticity of Supply (E) =0:
52. From the following data calculate price elasticity of supply:
Price per unit () 10
Totol Revenue (3) 1,000 1,500
{Price Elasticity of Supply (E)=0.8}
Aproducer supplies 80 units of agood at a price of R10per unit. Price elasticity of supply is 4, How much
willhesupply at9 per unit?
(48 Units)
nen price of acommodity falls from 12 per unit to9 per unit, the producer supplies 75 percent less
Output. Calculate price elasticity of supply. {Price Elastcity of Supply (E) =3}
S5, When
price good fals from 20 to 10 per unit, producer reduces supply from 100 units to 50 units.
Of a
Calculate price elasticity of supply. Price Elasticity of Supply (E) = 1}
