Question

calculate the elasticity of demand for the demand schedule by using differential calculus method p=60-0.2q where price is 1.zero....2.Rs 20........3.Rs 40

Answer 1

Both stock and market price of a product affect its supply to a greater extent. If the market price is more than the cost price, the seller would increase the supply of a product in the market. However, the decrease in market price as compared to cost price would reduce the supply of product in the market.