The coefficient of elasticity of supply of a commodity A is 3.H ow much quantity of the commodity will a seller supply when price rises by₹1, if he supplies 30 units at ₹3 per unit ?

Explanation

Price Elasticity of Supply `(E_(s)) = (Delta Q)/( DeltaP) xx (P)/(Q)`
3 = (DeltaQ)/(1) xx (3)/(30 ) = DeltaQ = 30`
As price increase, the quantity supplied will also increases. It means
New Quantity = Original Quantity (Q) + Change in Quantity
= 30 + 30 = 60 units
New Quantity = 60 units