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- 1. Multiple Choice
Price elasticity of supply is the responsiveness of
demand to a change in price.
price to a change in supply.
quantity supplied to a change in price.
price to a change in supply.
- 2. Multiple Choice
Factory owner Susan has calculated that her PES is 3. This number means that,
if price were to rise by 2% Susan would supply 6% more products.
If price were to rise by 2% Susan would supply 3% more products.
the percentage change in price is three times the percentage change in quantity.
in the PES formula, the top number is smaller than the bottom number.
- 3. Multiple Choice
The PES for wheat in a given country
is less elastic the longer the time period in question.
is more elastic the more substitutes there are for wheat.
is greater the more wheat there is in storage.
will be higher if there are restrictions on wheat imports.
- 4. Multiple Choice
If the supply curve of a product is vertical, PES is equal to
0.
1.
-1.
infinity.
- 5. Multiple Choice
The supply of agricultural goods is
relatively inelastic while the supply of manufactured goods is relatively elastic.
relatively elastic while the supply of manufactured goods is relatively inelastic.
- 6. Multiple Choice
If storage of a good is cheap and readily available, supply is likely to be
relatively elastic.
relatively inelastic.
perfectly inelastic.
perfectly elastic.
- 7. Multiple Choice
The mining boom in created a shortage of labour in the hospitality industry in WA. This made the supply of restaurant meals in WA
perfectly inelastic.
more elastic.
perfectly elastic.
less elastic.
- 8. Multiple Choice
If the price of a product doubled and in response the quantity supplied also doubled then the PES is equal to
1
-1
2
o
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