CA Foundation doubt
The supply function is given as Q = -100+10P. Find the elasticity using point method, when price is Rs. 15. a. 4 b. -3 c. -5 d. 3
Asked by Omprakash2 Jun 2024381 views
2 answers
Tanush · 2 Jun 2024
Answer is 3
Aazmi · 2 Jun 2024
Elasticity of supply = (1/Slope of supply) x P/Q = {1/(1/10)} x 15/50 = 10 x 15/50 = 150/50 = 3. Hence, correct answer is option D.
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