#### Question

A producer supplies 80 units of a good at a price of Rs 10 per unit. Price elasticity of supply is 4. How much will he supply at Rs 9 per unit?

#### Solution

Given that

Q_{0} = 80 units

P_{0} = Rs 10

E_{s} = 4

P_{1} = Rs 9

ΔP = P_{1} - P_{0}

ΔP = 9 - 10 = -1

ΔQ = Q_{1} - Q0

ΔQ = Q_{1} - 80

we know that

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

`4=(Q_1-80)/-1xx10/80`

`4=(Q_1-80)/-8`

-32 = Q1 - 80

Therefore, Q1 = 48 units

48 units of a good will be supplied by a producer at Rs 9 per unit.

Is there an error in this question or solution?

Solution A Producer Supplies 80 Units of a Good at a Price of Rs 10 per Unit. Price Elasticity of Supply is 4. How Much Will He Supply at Rs 9 per Unit? Concept: Concept of Supply.