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      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% Correct Answer Incorrect Answer
      B Y will fall by 20% Correct Answer Incorrect Answer
      C Y will not change Correct Answer Incorrect Answer
      D Y will fall by 9.5% Correct Answer Incorrect Answer
      E Y will fall by 10% Correct Answer Incorrect Answer

      Solution

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