At a price of $R s . 8$ per unit, the quantity supplied of a commodity is $200$ units. Its price elasticity of supply is $1.5$ . If its price rises to $R s . 10$ per unit, calculate the quantity supplied at the new price.

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Solution

Suppose, $M$ units of the commodity are supplied at the new price.
Price elasticity of supply $(E_{S}) = \frac{P}{Q} \times \frac{△ Q}{△ P}$
$P = R s . 8, P_{1} = R s . 10; △ P = P_{1} - P = R s . 10 - R s . 8 = R s . 2$
$Q - 200 u n i t s; Q_{1} = M u n i t s; △ Q = Q_{1} - Q = (M - 200) u n i t s$
$E_{S} = 1.5$
$1.5 = \frac{8}{200} \times \frac{M - 200}{2}$ or $1.5 = \frac{M - 200}{50}$
Or, $75 = M - 200$ or $M = 75 + 200$
Or, $M = 275$
The quantity supplied $= 275 u n i t s$ .

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At a price of Rs.8 per unit, the quantity supplied of a commodity is 200 units. Its price elasticity of supply is 1.5. If its price rises to Rs.10 per unit, calculate the quantity supplied at the new price.

At a price of $R s . 8$ per unit, the quantity supplied of a commodity is $200$ units. Its price elasticity of supply is $1.5$ . If its price rises to $R s . 10$ per unit, calculate the quantity supplied at the new price.