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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition4 Marks
Question
When the price of a commodity rises from Rs. 10 to Rs. 11 per unit, its quantity supplied rises by 100 units. Its price elasticity of supply is 2. Calculate its quantity supplied at the increased price.
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Answer

$\text{E}_{s}= \frac{\text{P}}{\text{Q}}\times\frac{\triangle{\text{Q}}}{\triangle{\text{P}}}$$2 = \frac{10}{\text{Q}}\times\frac{100}{1}$
$\text{Q} = 500$
Supply at the increased price $​​​​= {\text{Q}} + \triangle{\text{Q}}$
$= 500 +100 = 600.$

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