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A firm supplies 10 units of a good at a ...

A firm supplies 10 units of a good at a price of Rs.5 per unit, `P.e_(S)` is 1.25, what quantity will the firm supply at a price of Rs.7 per unit.

Text Solution

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`{:(" P 5"),(" P"_(1)" 2"),(ulbar(Delta"P 2 ")):}" "{:(" Q 10"),(" Q"_(1)" ?"),(ulbar(Delta"Q ?")):}`
`P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)`
`1.25=(5)/(10)xx(DeltaQ)/(2)`
`25=5DeltaQ`
`DeltaQ=5`
`DeltaQ=Q_(1)-Q`
`5=Q_(1)-10`
`Q_(1)=15` units
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