Question

At a price of 20 per unit if producer supply is 1200 units find out the quantity supplied if it's price falls by rs 4 per unit coefficient of elasticity is 0.5 ?

(From class 11th microeconomics chapter supply) ​

Answer 1

p1=20

q1=1200

q2=?

p2= 16

%age change in price= -4/20 *100

=-20%

%change in quantity= (q2-1200)/1200 *100

=((q2-1200)/ 12)%

price elasticity of supply=0.5

%age change in quantity/ %age change in price= 0.5

((q2-1200)/12)/ -20=0.5

q2-1200 / 12= -10

q2-1200= -120

q2= 1080 units