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