Question

as a result of fall in price of a commodity from rupees 6 per unit 5 per unit the quantity supplied falls by 25% calculates is price elasticity of supply​

Answer 1

Answer:

Answer

Let us assume that initially quantity supplied =M units.

Given, P=Rs.9;P

1

=Rs.10;△P=P

1

−P=Rs.10−Rs.9=Rs.1

Q=M units;△Q=25 units

E

S

=5

Price elasticity of supply (E

S

)=

Q

P

×

△P

△Q

5=

M

9

×

1

25

⇒5M=25

Or, M=

5

225

=45

Quantity supplied at Rs.9 per unit =45 units.