Question

27. The price of a commodity rises by 20%, which leads to an increase in supply by 20 units. If price
elasticity is 2, calculate initial and final supply of the commodity.
(Initial Supply = 50 units; Final Supply = 70 units)

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Answer 1

commodity rises by 20%, which leads to an increase in supply by 20 units. If price

elasticity is 2, calculate initial and final supply of the commodity.

(Initial Supply = 50 units; Final Supply = 70 units)