Micro

Market Equilibrium

Medium

At a price of ₹8 per unit, the quantity supplied of a commodity is 200 units. If its price elasticity of supply is 1.5, if the price rises to ₹10 per unit, calculate the quantity supplied at the new price?

200 units

275 units

125 units

100 units

✅ Correct Option: 2

Option 2: 275 units -> Using the price elasticity of supply formula: Es = (ΔQ/Q₁)/(ΔP/P₁). Here, ΔP = ₹10 - ₹8 = ₹2, so (ΔP/P₁) = 2/8 = 0.25. Given Es = 1.5, we have: 1.5 = (ΔQ/200)/0.25, which gives ΔQ = 1.5 × 0.25 × 200 = 75 units. Therefore, new quantity supplied = 200 + 75 = 275 units. Price elasticity of supply measures the responsiveness of quantity supplied to price changes; an elasticity of 1.5 means a 1% increase in price leads to a 1.5% increase in quantity supplied. -> correct

2026: 21 May Shift 1

Which one of the following formula is correct for the Marginal Revenue Product of the labor (MRP $_L$ )?

2025: 30 May Shift 1

Downward movement along the demand curve is caused by _________.

2025: 30 May Shift 1

When demand curve shift rightward and supply curve shift leftward what impact this will have on pricing?

2025: 27 May Shift 2

Arrange the following statement when the market demand curve shifts rightward with the supply curve remaining unchanged.

(A) The shift indicates that at any price the quantity demanded is more than before.

(B) Some individuals will be willing to pay higher price and the price would tend to rise.

(D) At the new equilibrium, quantity and price will be greater than before.

Choose the correct answer from the options given below:

2026: 12 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Increase in demand and no change in supply	(I) Equilibrium quantity decreases.
(B) Both demand and supply increase	(II) Equilibrium quantity increases.
(C) Decrease in supply and no change in demand	(III) Change in price depends on magnitude of shift
(D) Increase in demand and decrease in supply	(IV) Equilibrium price increases.

Choose the correct answer from the options given below:

2026: 13 May Shift 1

What happens when both demand and supply curves shift rightwards simultaneously? Identify the correct statements from the following in this context.

(A) Qunatity will increase.

(B) Qunatity will decrease.

(D) Price may increase, decrease or remain unchanged.

Choose the correct answer from the options given below:

At a price of ₹8 per unit, the quantity supplied of a commodity is 200 units. If its price elasticity of supply is 1.5, if the price rises to ₹10 per unit, calculate the quantity supplied at the new price?

Solution

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