150 Units -> Using the price elasticity of supply formula: Es = [(Q2 - Q1)/Q1] / [(P2 - P1)/P1]. Substituting values: 2.5 = [(Q2 - 300)/300] / [(4 - 5)/5]. Solving: 2.5 = [(Q2 - 300)/300] / [-0.2]. This gives us: 2.5 × (-0.2) = (Q2 - 300)/300, so -0.5 = (Q2 - 300)/300. Therefore: Q2 - 300 = -150, which means Q2 = 150 units. When price falls by 20% (from Rs. 5 to Rs. 4), with elasticity of 2.5, quantity supplied falls by 50% (from 300 to 150 units). -> correct
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…
CUET UG 2025 — Economics Micro
2025mcqmedium
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?
Official previous-year question
Held on 2 Jun 2025 · Verified 13 Jul 2026.
Options
- A
300 Units.
- B
450 Units.
- C
600 Units.
- D
150 Units.
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