The quantity supplied of a commodity at a price of Rs. $8$ per unit is $50$ units. Its price elasticity of supply is $1.6$ . Calculate the price at which its quantity supplied will be 35 units.

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Solution

Given $Q = 50 u n i t s; Q_{1} = 35 u n i t s;$
$Δ Q = Q_{1} - Q = (35 - 50) = (-) 15 u n i t s$
$P = R s .8; E_{s} = 1.6$
Price elasticity of supply $E_{s} = \frac{P}{Q} \times \frac{Δ Q}{Δ P}$
$1.6 = \frac{8}{50} \times \frac{- 15}{Δ P}$
$1.6 = \frac{- 120}{50 Δ P}$
$Δ P = \frac{- 120}{50 \times 1.6} = - 1.5$
New price $= R s .8 - R s .1 .5 = R s .6 .5$

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The quantity supplied of a commodity at a price of Rs. 8 per unit is 50 units. Its price elasticity of supply is 1.6. Calculate the price at which its quantity supplied will be 35 units.

Given Q=50units;Q1=35units;ΔQ=Q1−Q=(35−50)=(−)15unitsP=Rs.8;Es=1.6Price elasticity of supply Es=PQ×ΔQΔP1.6=850×−15ΔP1.6=−12050ΔPΔP=−12050×1.6=−1.5New price =Rs.8−Rs.1.5=Rs.6.5

The quantity supplied of a commodity at a price of Rs. $8$ per unit is $50$ units. Its price elasticity of supply is $1.6$ . Calculate the price at which its quantity supplied will be 35 units.