If the price of a bag of maize rises from ₦10,000 to ₦12,000 and the quantity supplied increases from 500 bags to 600 bags, what is the price elasticity of supply?

Price elasticity of supply (PES) = (% change in quantity supplied) ÷ (% change in price). % change in quantity supplied = (600−500)/500 × 100 = 20%. % change in price = (12,000−10,000)/10,000 × 100 = 20%. PES = 20%/20% = 1.0. A PES of 1.0 indicates unit elastic supply, meaning quantity supplied responds proportionately to price changes.