A firm earns a revenue of Rs.50 at the market price of a good at Rs.10 – InterviewSolution

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1.	A firm earns a revenue of Rs.50 at the market price of a good at Rs.10. The market price increases to Rs.15 and the firm now earns a revenue of Rs.150. What is price elasticity of the firm supply cruve?
Answer» `{:(" P 10"),(" P"_(1)"15"),(ulbar(DeltaP" 5")):}" "{:("Q 5"),("Q"_(1)" 5"),(ulbar(DeltaQ" 5")):}" "{:("TR/Price"=50//10=5),("TR/Price"=150//15=10):}` `P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)=(10)/(5)xx(5)/(5)=2` `P.e_(S)=2`

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