Question 1

Price elasticity of supply (PES) measures:

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 2

State what a PES value greater than 1 indicates.

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 3

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 4

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 5

Price elasticity of supply (PES) measures:

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 6

State what a PES value between 0 and 1 indicates.

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 7

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 8

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 9

State what a PES value between 0 and 1 indicates.

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 10

State what a PES value greater than 1 indicates.

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 11

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 12

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 13

Explain why firms need to consider PES when predicting the effect of price changes.

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 14

If the price of a good rises by 5% and the quantity supplied increases by 15%, the PES is:

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 15

Which product is most likely to have highly inelastic supply?

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 16

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 17

Which of the following factors is most likely to increase the price elasticity of supply?

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 18

Explain why the supply of land is perfectly price inelastic.

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 19

Explain why the supply of manufactured goods is typically more elastic than the supply of agricultural products.

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Question 20

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

Accepted Answer

Sign up to Aimnova to view the full markscheme, model answer, and get AI-powered feedback on your response.

Topic 2.6: Price Elasticity of Supply Questions

Ready to practice Topic 2.6?