Question

16. The coefficient of elasticity of supply of a commodity is 3. A seller supplies 20 units of this commodity
at a price of R8 per unit. How much quantity of this commodity will the seller supply when the price
rises by 32 per unit?​

Answer 1

Answer :

Quantity = 35 units

Answer 2

Explanation:

Given  The coefficient of elasticity of supply of a commodity is 3. A seller supplies 20 units of this commodity at a price of Rs 8 per unit. How much quantity of this commodity will the seller supply when the price  rises by 2 per unit?

• Given Elasticity supply = 3
• So the supplier supplies 20 units at the rate of Rs 8 per unit  
• So the price rises from 8 to 10 (since it rises by RS 2 per unit)
• So Elasticity supply = ΔQ / ΔP x P/Q ----------1
•      So ΔP = New price – initial price
•                  = 10 – 8
•     So ΔP = 2
• So ΔQ = new quantity – old quantity
•   Let x denote new quantity
•   So ΔQ = x – 20
• Substituting in equation 1 we get
•     3 = x – 20 / 2 x 8/20
•      3 = x – 20 / 5
•     15 = x – 20
•      x = 15 + 20
•    Or x = 35
• So the new quantity supply will be 35  units

Reference link will be

https://brainly.in/question/9973689