Q10 of 50 Page 1

When priceof a good rises from Rs 8 to Rs 10 per unit, the producer supplies 40 units more.Price elasticity of supply is 2. What is the quantity supplied before price change?Calculate.

Es =Price/Quantity X Change in price/Change in quantity


2= 8/QX 40/2


2=8/QX20


Q= 8X20/2


Q= 80


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