# A firm supplies 10 units of a good at a price

**2** answer

Given, ${{E}*{s}}$ =1.25, P = Rs. 5 ${{P}*{1}}$ = Rs.7, Q = 10

${{Q}

*{1}}$=?,*

∆P = ${{P}{1}}$ - P = 7-5 = 2

∆P = ${{P}

Price Elasticity of Supply (${{E}_{s}}$) = ∆Q/∆P X P / Q

1.25 = ∆Q/2 X 5/10,∆Q = 1.25 x 4 =5

${{Q}*{1}}$ = Actual Quantity + Change in Quantity = = Q+∆Q = 10+5 ${{Q}*{1}}$ = 15 units

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