WORKSHEET BASED ON UNIT – 3 (MICRO - ECONOMICS)

SUPPLY & ELASTICITY OF SUPPLY

Class : XI – ‘C’ (2022–2023)

1. The supply function is given as :

Qs = – 20 + 2PX
Answer the following questions :-
(i) What will be the quantity supplied if price is Rs. 12?
(ii) At what price supply will be zero?
(iii) Find the price at which quantity supplied is 60 units.
2. There are three firms A, B and C in the market. Their individual supply schedules are given below :
Price (Rs.) Supply by A Supply by B Supply by C Market Supply (SM)

5 100
10 140
15 150
20 170

Firm’s A supply is half of firm B and firm C’s supply is two times that of firm B. Compute the market
supply schedule and supply of firm A and C.

3. There are three identical firms in the market. The following table shows the supply schedule of firm
one. Compute the market supply schedule.
Price 0 1 2 3 4 5 6 7 8
SS1 (units) 0 0 2 4 6 8 10 12 14

4. The supply function is given as :

Qs = 20 + 2PX
Prepare the supply schedule, if price of commodity X varies from Rs. 8 to Rs. 5.

5. The price elasticity of supply of good X is twice the price elasticity of supply of good Y. If the price of X
rises by 10% and that of Y rises by 15%. Calculate the percentage increase in supply of commodity X
and Y, if commodity Y has unitary elastic supply.

6. The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16%
rise in price of X results in 40% in its supply. If the price of Y falls by 8%, calculate the percentage fall
in its supply.

7. The ratio of price elasticity of supply of commodity X and Y is 3:1. A 5% fall in price of X results in 7.5%
fall in its supply. If the price of Y rises by 10%, calculate the percentage rise in its supply.

Possibility or Impossibility doesn’t depend on the size of our goal but on the size of
our Faith... So always keep Faith to make everything possible…!!
 8. The market price of a commodity changes from Rs. 5 to Rs. 20. As a result, the quantity supplied by
the firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find out the initial
and final output levels of the firm.

9. The supply schedule of a commodity changes as follows :

Price Per Unit(Rs.) (A) (B)
Quantity supplied Initially (units) Quantity supplied after Change (units)
1 20 0
2 40 20
3 60 40
4 80 60
5 100 80

Calculate elasticity of supply when price rises from Rs. 2 to Rs. 3 both in case A and B.

10. The price elasticity of supply of a commodity is 2. The producer sells a certain quantity of this
product at a price of Rs. 10 per unit. When price falls, he sells 40% less quantity. What is the new
price?

11. The price elasticity of supply of a commodity is 1.5. When its price falls by 20%, its quantity supplied
declines by 12 units. Calculate the initial and the final levels of quantity supplied of the commodity.

12. Commodities X and Y have equal price elasticities of supply. The supply of X rises from 400 units to
500 units due to a 20% rise in its price. Calculate the percentage fall in supply of Y if its price falls by
8%.

13. The price elasticity of supply of commodities X and Y are equal. The price of X falls from Rs. 10 toRs. 8
per unit and its quantity supplied falls by 16%. The price of Y rises by 10%. Calculate the percentage
increase in its supply.

14. Total revenue is Rs. 400 when the price of the commodity rises from Rs. 2 per unit to Rs. 3 per unit,
then the quantity supplied is 300 units. Calculate the price elasticity of supply.

15. Total revenue at a price of Rs. 4 per unit is Rs. 480. Total revenue increases by Rs. 240 when its
price rises by 25%. Calculate its price elasticity of supply.

16. The price of a good is Rs. 10 per unit and total revenue from it is Rs. 1,000. The price elasticity of
supply is 0.8. The price of the good falls by 10%. Calculate Total Revenue from the reduced price.

Possibility or Impossibility doesn’t depend on the size of our goal but on the size of
our Faith... So always keep Faith to make everything possible…!!
 17. When price of a good falls by 10%, the total revenue of a firm reduces to one-half of the original
revenue. If at the initial price of Rs. 20, 18 units are supplied, calculate quantity at the reduced price.
Also, calculate price elasticity of supply.

18. Price elasticity of good X is one and half times the price elasticity of good Y. S X rises from 125 units to
175 units due to a 16% rise in PX. Calculate the percentage fall in SY, if PY reduces from 10 to 7.

19. Price elasticity of supply of good Y is three-fourth the price elasticity of supply of good X. The price of
X rises from Rs. 10 to Rs. 11.50 per unit and its quantity supplied increases by 18%. If the price of Y
falls from Rs. 11 to Rs. 9.90, find the percentage fall in its supply.

20. A firm earns a revenue of Rs.50 when the market price of a good is Rs. 10. The market price increases
to Rs. 15 and the firm now earns revenue of Rs. 150. What is the price elasticity of the firm’s supply
curve?

21. A producer does not supply any quantity of a good at a price of Rs. 100 per unit. But when price rises
by 30%, total revenue earned by him is Rs. 2,600. Calculate price elasticity of supply and comment on
the likely shape of the supply curve.

22. The ratio of elasticity of supply of commodities A and B is 1 : 1.5. 20% fall in price of A results in a
40% fall in its supply. Calculate the percentage increase in supply of B if its price rises from Rs. 10 per
unit to Rs. 11 per unit.

23. The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16%
rise in the price X results in a 40% rise in its supply. If the price of Y falls by 8%, calculate the
percentage fall in its supply.

24. From the following information find the slope of the supply curve :
“The supply of Rice is 1,000 kg when the price is Rs. 50 per kg, but supply decreases to 800 kg when
the price falls to Rs. 40”.

25. The supply function of commodity X is Sx = 10 + 5P.

(i) Derive the supply schedule at different possible prices (2, 4, 6, 8, 10) and draw the supply
curve.
(ii) Calculate the slope of the curve.

26. A producer sells 10 units of a good at the price of Rs. 5 per unit. Slope of the supply curve of that
good is 2. Calculate the price elasticity of supply.

Possibility or Impossibility doesn’t depend on the size of our goal but on the size of
our Faith... So always keep Faith to make everything possible…!!
 27. If the Supply function is given as Sx = 250 + 50P, what would be the supply if PX = Rs. 5? Also, if the
government imposes GST of 8%, find the new supply function.

28. The price elasticity of supply of a commodity is 0.8. If the price of the commodity falls by 10% from
Rs. 10. Calculate the change in quantity supplied, new quantity and total revenue before and after
the price change if you are given that the original quantity was 100 units.

29. The straight line supply curve of a commodity passes through the point of origin forming an angle of
45o . When its price rises by 25%, its quantity supplied rises by 20 units. Calculate its original supply.

30. The supply curve of the commodity A passes through the origin and makes an angle of 60 o. When its
price rises by 40%, its quantity supplied rises by 10 units. Calculate its original supply.

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Possibility or Impossibility doesn’t depend on the size of our goal but on the size of
our Faith... So always keep Faith to make everything possible…!!