Question 1

Price elasticity of supply (PES) measures:

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Question 2

State what a PES value greater than 1 indicates.

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Question 3

State two determinants of price elasticity of supply (PES).

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Question 4

Define price elasticity of supply and explain the difference between elastic and inelastic supply.

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Question 5

State what a PES value between 0 and 1 indicates.

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Question 6

Define price elasticity of supply and explain the difference between elastic and inelastic supply.

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Question 7

State what a PES value between 0 and 1 indicates.

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Question 8

State what a PES value greater than 1 indicates.

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Question 9

Price elasticity of supply (PES) measures:

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Question 10

State two determinants of price elasticity of supply (PES).

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Question 11

Explain why the supply of agricultural products is often price inelastic in the short run.

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Question 12

Explain how the ability to store inventories affects price elasticity of supply.

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Question 13

Explain why the supply of services is often relatively price inelastic in the short run.

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Question 14

Explain how factor mobility affects price elasticity of supply.

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Question 15

Explain why spare production capacity tends to make supply more price elastic.

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Question 16

Explain why supply is usually more elastic in the long run than in the short run.

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Question 17

Explain why a tax on a good with inelastic supply may lead to higher prices for consumers.

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Question 18

The price of a product rises by 10% and quantity supplied rises by 25%. Calculate PES.

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Question 19

Explain why new housing supply is often very price inelastic in the short run.

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Question 20

Explain why the supply of fresh strawberries is likely to be less elastic than the supply of canned strawberries.

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Topic 2.6: Price Elasticity of Supply Questions

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