Question

The elasticity of supply of a wheat is 0.3 and the elasticity of supply of magazine is 1.3 if the price of wheat and magazines both rice 10% what is the increase in the quantity of wheat supplied and the increase in the quantity of magazine supply

Answer 1

Increase in quantity of wheat supplied= $0.3\times 10= 3$%

Increase in quantity of Magazine supplied= $1.3\times 10= 13$ %