CUET Economics 2025 2 June Shift 1 PYQs

The price elasticity of supply of a commodity is 2.5. At a price of Rs.5 per unit, its quantity supplied is 300 units. What will be its quantity supplied at a price of Rs.4 per unit?

Suppose in the long run, the government imposed a tax on the supply of a commodity. How does it affect the equilibrium quantity of commodity?

1. The quantity of commodity will decrease.
2. The quantity of commodity will increase.
3. The quantity of commodity will remain same.
4. The supply curve will shift rightwards which will decrease quantity of commodity.

When both the demand and supply curves shift to indicate an increase in demand and supply in the same proportion. Then: