Question

A fruit seller sells $56kg$ per day when price of apples is Rs. $7$ per kg. When price rises to Rs. $8$ per kg, how much quantity of the apples will the seller sell when elasticity of supply is unitary in this case?

Answer 1

Suppose the seller supplies $X$ kg
Here, $P=Rs.7;P_1=Rs.8;$

$\Delta P=P_1-P=Rs.8-Rs.7=Rs.1$
$Q=56kg;Q_1=Xkg;$

$\Delta Q=Q_1-Q=(X-56)kg$
$E_s=1$
Price elasticity of supply $E_s=\frac{P}{Q}\times \frac{\Delta Q}{\Delta P}$
$1=\frac{7}{56}\times \frac{(X-56)}{1}$
$1=\frac{(X-56)}{8}$
$X-56=8$
$X=8+56=64$
New Quantity supplied $64kg$