Question

- A producer supplies 40 units of a good at price of Rs. 2 par,
ce of Rs. 2 per unit. When price
changes to Re 1 per unit how many units will he be willing to supply, if price elasticity
of supply is 1? Calculate​

Answer 1

When Price of a Good Rises from Rs 8 per Unit to Rs 10 per Unit, Producer Supplies 40 Units More. Price Elasticity of Supply is 2.n: