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CUET Economics 2025 PYQs31 May Shift 1. Free, no login required.

Micro

past year questions, CUET Economics 2025 31 May Shift 1

Market Equilibrium

past year questions, Micro, CUET Economics 2025 31 May Shift 1

Easy

When the price elasticity of supply is equal to zero. Then..........

  1. Supply curve is sloping downward.
  2. Supply curve is horizontal.
  3. Supply curve is upwards sloping.
  4. Supply curve is vertical.

Solution

✅ Correct Option: 4

Option 1 -> A downward sloping supply curve is not typical and does not represent zero elasticity.

Option 2 -> A horizontal supply curve represents perfectly elastic supply (infinite elasticity), not zero elasticity.

Option 3 -> An upward sloping supply curve represents normal supply with positive elasticity, not zero elasticity.

Option 4 -> A vertical supply curve represents perfectly inelastic supply where quantity supplied remains constant regardless of price changes.

Hence, Supply curve is vertical -> When price elasticity of supply equals zero, we have perfectly inelastic supply. This means quantity supplied does not respond to price changes at all (% change in quantity supplied = 0). Graphically, this is shown by a vertical supply curve where the same quantity is supplied at any price level. Examples include rare collectibles, land in a specific location, or goods with fixed supply in the short run. -> correct

Related questions:

2026: 21 May Shift 2

Arrange the following statements with reference to the impact of government price regulations on goods within the framework of perfect competition:

A. Subsequently, Government sets minimum prices for these goods and services.

B. For certain goods and services, fall price below a particular level is not desirable.

C. Consequently, Government needs to buy the surplus at the predetermined price.

D. Thus, this leads to an excess supply the market.

Choose the correct answer from the options given below:

2025: 14 May Shift 1

Identify the options which reflect the impact of simultaneous shifts of demand and supply on equilibrium

(A) When demand shift right and supply left, quantity may increase, decrease or remain unchanged but price decreases

(B) When demand and supply shift leftward, quantity decreases but price may increase, decrease or remain unchanged

(C) When demand and supply shift rightward, quantity increases but price may increase, decrease or remain unchanged

(D) When demand shift left and supply right, quantity may increases, decreases or remain unchanged but price decreases

2025: 30 May Shift 1

Match List-I with List-II

Change in Demand or SupplyEffect on equilibrium price / equilibrium quantity
(A) Increase in demand > Increase in supply(I) equilibrium price will rise but no change in equilibrium quantity.
(B) Increase in supply when demand is perfectly inelastic(II) No change in equilibrium price.
(C) Same proportion of increase in demand and supply(III) equilibrium price will fall but no change in equilibrium quantity.
(D) Increase In demand when supply is perfectly inelastic(IV) equilibrium price and quantity will rise.

Choose the correct answer from the options given below:

2026: 11 May Shift 1

Excess demand and excess supply can be adjusted by the invisible hand to reach the ________________ .

2025: 15 May Shift 1

If price of a commodity rises from Rs. 10 to Rs. 15, its supply increases by 20%.

calculate the price elasticity of supply for this commodity.

2026: 21 May Shift 2

If additional unit tax imposed on goods by the government, then how it will be affect the movement of supply curve?

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