The market price changes from Rs.5 to Rs.20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm's supply curve is `0.5`. Find the initial and final quantity sold of the firm.

Explanation

`P.e_(S)=0.5`
`{:(" P 5"),(" P"_(1)" 20"),(ulbar(DeltaP" 15")):}" "{:("Q ?"),("Q"_(1)" ?"),(ulbar(DeltaQ" 15")):}`
`P.e_(S)=(P)/(Q)xx(DeltaQ)/(DeltaP)`
or `0.5=(5)/(Q)xx(15)/(15)`
`0.5Q=5`
`Q=(5xx10)/(5)=10" units (Initial level)"`
`DeltaQ=Q_(1)-Q`
or `15=Q_(1)-10`
`15+10=Q_(1)`
`Q_(1)=25` units (Final output level)