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
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.
CUET UG 2025 — Economics Micro
2025mcqeasy
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.
Official previous-year question
Held on 15 May 2025 · Verified 13 Jul 2026.
Options
- A
0.4
- B
0.5
- C
1.25
- D
2.5
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