Solving this Question will give result of Quantity(Q) 600 units, and the percent change in quantiy(ΔQ) 22.5.
Coefficient of price elasticity of supply
As per the question, we are given:
Price elasticity of supply = 1.5%
Percent Change in Price = 15%
New Quantity = Q1 = 735 units.
We have to Find:
Quantiy = Q
The Formula for Price elasticity = Percent change in Quantiy divided by percent change in price
⇒ 1.5 = ΔQ ÷ 15
⇒ 1.5 × 15 = ΔQ
⇒ 22.5 = ΔQ
Now,
ΔQ = (Q1 -Q) ÷ Q ×100
⇒ 22.5 = 735 - Q ÷ Q ×100
Solving this equation will give Q = 600.
Therefore, the quantity is 600.
Learn More abour Price elasticity here:
https://brainly.com/question/24384825
