Price elasticity of supply of a good is 2. A producer sells 60 units of a good at a price of Rs.6 per unit .At what price will he sell 40 units ?

Price elasticity of supply of a good is 2. A producer sells 60 units o

1.	Price elasticity of supply of a good is 2. A producer sells 60 units of a good at a price of Rs.6 per unit .At what price will he sell 40 units ?
Answer» <html><body><p></p>Solution :Given, <br/> `""E_(s)=(P)/(Q)<a href="https://interviewquestions.tuteehub.com/tag/xx-747671" style="font-weight:bold;" target="_blank" title="Click to know more about XX">XX</a>(DeltaQ)/(DeltaP)` <br/>`2=(6)/(<a href="https://interviewquestions.tuteehub.com/tag/60-328817" style="font-weight:bold;" target="_blank" title="Click to know more about 60">60</a>)xx(-<a href="https://interviewquestions.tuteehub.com/tag/20-287209" style="font-weight:bold;" target="_blank" title="Click to know more about 20">20</a>)/(DeltaP)` <br/>`120 DeltaP=-120` <br/>`DeltaP=-<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>` <br/>Now `P=P+DeltaP=6+(-1)=<a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. 5`</body></html>