Question

A firm earns revenue of 50 rs when market price of good is rs 10b. The market price increase rs 15 and firm collect rs 150 as revenue. Ed of firm supply curve ?​

Answer 1

Answer:

The market price ... is the price elasticity of the firm's supply curve? ... The market price increase to Rs 15 and the firm now earns a revenue of Rs 150. ... At Price, P1 = Rs 10. Total Revenue, TR1 = P1 x Q1 = 50 ... At Price, = Rs 15. Total Revenue, TR2 = P2 x Q2 =150 ... Elasticity of supply,es = ΔQ/ΔP x P/Q.

Answer 2

Firm’s revenue when price is Rs 10 per unit =Rs 50

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.Firm’s revenue when price is Rs 15 per unit = Rs 150

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.Firm’s revenue when price is Rs 15 per unit = Rs 150Quantity sold = Rs 150 / Rs 15 = 10 units

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.Firm’s revenue when price is Rs 15 per unit = Rs 150Quantity sold = Rs 150 / Rs 15 = 10 unitsP = 10 , ${{P}{1}}$ = 15, Q = 5 , Q1 = 10

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.Firm’s revenue when price is Rs 15 per unit = Rs 150Quantity sold = Rs 150 / Rs 15 = 10 unitsP = 10 , ${{P}{1}}$ = 15, Q = 5 , Q1 = 10∆P = ${{P}{1}}$ - P = 15-10 = 5

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.Firm’s revenue when price is Rs 15 per unit = Rs 150Quantity sold = Rs 150 / Rs 15 = 10 unitsP = 10 , ${{P}{1}}$ = 15, Q = 5 , Q1 = 10∆P = ${{P}{1}}$ - P = 15-10 = 5∆Q = Q1 - Q = 10-5 = 5

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.Firm’s revenue when price is Rs 15 per unit = Rs 150Quantity sold = Rs 150 / Rs 15 = 10 unitsP = 10 , ${{P}{1}}$ = 15, Q = 5 , Q1 = 10∆P = ${{P}{1}}$ - P = 15-10 = 5∆Q = Q1 - Q = 10-5 = 5Accordingly, ${{E}{s}}$ = ∆Q / ∆P x P/Q = 5/5 x 10/5 = 2

Firm’s revenue when price is Rs 10 per unit =Rs 50Quantity sold = Rs 50 / Rs 10 = 5 Units.Firm’s revenue when price is Rs 15 per unit = Rs 150Quantity sold = Rs 150 / Rs 15 = 10 unitsP = 10 , ${{P}{1}}$ = 15, Q = 5 , Q1 = 10∆P = ${{P}{1}}$ - P = 15-10 = 5∆Q = Q1 - Q = 10-5 = 5Accordingly, ${{E}{s}}$ = ∆Q / ∆P x P/Q = 5/5 x 10/5 = 2${{E}{s}}$ = 2 which implies elastic supply.