(a) Es = \(\frac{% change in quantity supplied}{% change in price}\)
% change in quantity = \(\frac{\Delta q}{q}\) x 100
= \(\frac{150 -100}{100}\) x 100
= \(\frac{50}{100}\) x 100
= 50%
% change in price = \(\frac{\Delta P}{P}\) x 100
= \(\frac{40-30}{30}\) x 100
= \(\frac{10}{30}\) x 100
= 33.3%
Es = \(\frac{50%}{33.3%}\) = 1.5
(b) The supply of rice is elastic. The coefficient of price elasticity of supply is greater than 1
(c) Factors that can cause an increase in the supplyof rice:
(i) Improvement in technology
(ii) Favourable weather condition
(iii) Increase in the number of producers or importers of rice.
(iv) Reduction in taxation which stimulates production or Importation of rice.
(v) Fall in the prices of of other commodities
(vi) Increase in subsidies
(vii) Reduction in the price of inputs