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When price of a commodity falls by ...

When price of a commodity falls by just 10%, the total revenue of a firm become half of the original total revence. If at the new prices if ₹45, only 10 units are supplied, calulate original quanity and price elasticity of supply.

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Percentage change in Supply `(E_(s)) = (Delta Q)/(DeltaP) xx (P)/(Q) = (8)/(5) xx (50)/(18) = 4.44`
`E_(s) = 4.44` (supply is highly elastic as `E_(s) gt 1` ), Original Quantity = 18 units.
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SANDEEP GARG-SUPPLY -UNSOLVED PARCTICALS
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