Price Elasticity of Supply

Elasticity can be classified into 4 types

• True

• False

When Price of a pen increases from ₹ 5 to ₹ 10, its supply increases from 1,000 to 1,200. Find the price elasticity of supply.

• 1.2

• 0.02

• 1

• 0.2

In Unitary Elastic Supply, the Supply Curve....

• will be parallel to x axis

• touches the negative side of x

• passes through the origin

A fruit seller sells 600 kg of grapes at market price of Rs. 40 per kg. When Price increases to Rs 50 per kg, he is ready to sell 750 kg of grapes. Find out elasticity of supply.

• 0.25

• 2.25

• 1

• 1.5

In Perfectly Elastic Supply, the Supply Curve....

• is a vertical line

• is a horizontal line

• is a downward sloping line

Whatever changes in price, the quantity supplied is unaffected in...

• perfectly elastic supply
• unitary elastic supply
• inelastic supply
• perfectly inelastic supply