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» Solution :Given, `""E_(s)=(P)/(Q)XX(DeltaQ)/(DeltaP)` `2=(6)/(60)xx(-20)/(DeltaP)` `120 DeltaP=-120` `DeltaP=-1` Now `P=P+DeltaP=6+(-1)=RS. 5`