Question

Commodity X and Y have an equal price elasticity of supply. The supply of X rises from 400 units to 500 units due to a 20 percent rise in its price. Calculate the percentage change in the supply of Y if its price falls by 8%.

A Y will rise by 5%
B Y will fall by 20%
C Y will not change
D Y will fall by 9.5%
E Y will fall by 10%
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