Micro

Market Equilibrium

Easy

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.

0.4

0.5

1.25

2.5

✅ Correct Option: 1

Option 1: 0.4 -> Price Elasticity of Supply (PES) = (% change in quantity supplied) / (% change in price). Here, % change in quantity supplied = 20%. % change in price = [(15-10)/10] × 100 = 50%. Therefore, PES = 20%/50% = 0.4. This indicates inelastic supply, meaning supply is relatively less responsive to price changes. -> correct

2026: 13 May Shift 2

In the perfect competition, the government regulation on goods which results in the creation of a black market is called ?

2025: 30 May Shift 1

What will be elasticity of demand of a commodity when its price rises by 20% and quantity demanded falls from 125 units to 75 units?

2025: 31 May Shift 1

The wage rate at which the labour market is in equilibrium is a point where.

Labour demand=0
Labour Demand= Labour Supply
Labour Supply=Labour Demand=0
Wages= Marginal Revenue from labour x Price

2023: 1 June Shift 1

For a given demand function Y = 50 - 2P, the quantity demanded at P = Rs. 20 is :

2026: 23 May Shift 1

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2026: 11 May Shift 2

'Through the minimum wage legislation, the government ensures that the wage rate of labourer's does not fall below a particular level.'

The said statement implies which of the following concept.

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.

Solution

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CUET Economics Past Year Questions (Topic-Wise)

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.