Price elasticity of supply of a good is 5 . A producer sells units 500 units of this good at Rs.5 per unit . How much will be willing to sell at Rs. 6 per unit ?

Price elasticity of supply of a good is 5 . A producer sells units 500

1.	Price elasticity of supply of a good is 5 . A producer sells units 500 units of this good at Rs.5 per unit . How much will be willing to sell at Rs. 6 per unit ?
Answer» <html><body><p><<a href="https://interviewquestions.tuteehub.com/tag/p-588962" style="font-weight:bold;" target="_blank" title="Click to know more about P">P</a>></p>Solution :`E_(s)=(P)/(<a href="https://interviewquestions.tuteehub.com/tag/q-609558" style="font-weight:bold;" target="_blank" title="Click to know more about Q">Q</a>)xx(<a href="https://interviewquestions.tuteehub.com/tag/deltaq-2053540" style="font-weight:bold;" target="_blank" title="Click to know more about DELTAQ">DELTAQ</a>)/(DeltaP)` <br/> `5=(5)/(500)xx(DeltaQ)/(1)` <br/>`DeltaQ=500` <br/> New `Q=Q+DeltaQ=500+500=1000` units</body></html>