Question

With the rise in price by Rs.10, the quantity supplied changes from 80 units to 100 units. The price elasticity of supply is (+) 1.0. Find out the price before change.​

Answer 1

ΔP= 10

ΔQ= 20

Q1=80

Q2=100

Es= 1

ΔQ/ΔP * P/Q =1

20/10 * P/80 = 1

P= 800/20

P= 40 Rs.