If elasticity of supply is equal to unity what will be the percentage increase in supply as a result...........

If elasticity of supply is equal to unity, what will be the percentage increase in supply as a result of 15 percent rise in price of a commodity?

12%

15%

- Elasticity of supply equal to unity: This means that the percentage change in quantity supplied is equal to the percentage change in price.

- A 15% increase in price leads to a 15% increase in the quantity supplied when elasticity is 1.

- Option 1 (8%) and Option 2 (12%) are incorrect because they imply that the percentage change in supply is less than the percentage change in price.

- Option 3 (0%) is incorrect, indicating no change in supply, which contradicts the condition of unitary elasticity.

- Option 4 (15%) is correct because it reflects the same percentage change in supply as the change in price.

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The rise in supply due to price is called