CBSE (Arts) Class 12CBSE
Share
Notifications

View all notifications
Books Shortlist
Your shortlist is empty

A Producer Supplies 100 Units of a Good at a Price of Rs 20 per Unit. Price Elasticity of Supply is 2. at What Price Will He Supply 50 Units? Calculate - CBSE (Arts) Class 12 - Economics

Login
Create free account


      Forgot password?

Question

A producer supplies 100 units of a good at a price of Rs 20 per unit. Price elasticity of supply is 2. At what price will he supply 50 units? Calculate

Solution

Given that

Q0 = 100 units

P0 = Rs 20

P1 =Rs 10

Q1 = 50 units

As we know that

`E_s=(DeltaQ)/(DeltaP)xxP_0/Q_0`

ΔP = P1-P0

ΔP =P1-20

ΔQ=Q1-Q0

ΔQ= 50 - 100= - 50 units

`2=(-50)/(P_1-20)xx20/100`

P1=Rs 15

Therefore,at aprice of Rs15, the Producer will supply 50 units.

  Is there an error in this question or solution?

APPEARS IN

Video TutorialsVIEW ALL [2]

Solution A Producer Supplies 100 Units of a Good at a Price of Rs 20 per Unit. Price Elasticity of Supply is 2. at What Price Will He Supply 50 Units? Calculate Concept: Concept of Supply.
S
View in app×