At a price of ₹8 per unit, the qunatity supplied of a commodity is 200. Its price elasticity of supply is 1.5. If its pricce rises to ₹10 per unit, calculate its quantity supplied at the new price.

Explanation

Price Elasticity of supply `(E_(s)) = (DeltaQ)/(DeltaP) xx (P)/(Q)`
`1.5 = (DeltaQ)/(2)xx(8)/(200) i.e., Delta = 75`
As price increases, the quantity suppplied will also increases. It means
New Quantilty = Oringinal Quantity (Q) + Change in Quantity
= 200 + 75 = 275 units
New Quantity = 275units