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At a price of ₹5 per units of commodity...

At a price of ₹5 per units of commodity A, total revence is ₹ 800.When its prices rises by 20 percent ,total revenue by ₹400.Calculate its price elasticity of supply .

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Price Elasticity of Supply `(E_(s)) = (DeltaQ)/(DeltaP) xx (P)/(Q) = (40)/(1) xx (5)/(160) = 1.25`
`E_(s) =1.25` (supply is highly elastic as `E_(s) gt 1`
`E_(s)` is always positive due to direct relationship between price and quantity supplied.
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SANDEEP GARG-SUPPLY -UNSOLVED PARCTICALS
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  9. When price of a commodity falls by 10%, its supply decreases from 80 u...

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