2.8 Price Elasticity of Supply
2 hours ago
deanhoss
Save
Edit
Host a game
Play LiveLive
Assign HW
Solo Practice
Practice
• Question 1
30 seconds
Report an issue
Q.

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.

• Question 2
30 seconds
Report an issue
Q.

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.

• Question 3
30 seconds
Report an issue
Q.

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.

• Question 4
30 seconds
Report an issue
Q.

If the supply curve of a product is vertical, PES is equal to

0.

1.

-1.

infinity.

• Question 5
30 seconds
Report an issue
Q.

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.

• Question 6
30 seconds
Report an issue
Q.

If storage of a good is cheap and readily available, supply is likely to be

relatively elastic.

relatively inelastic.

perfectly inelastic.

perfectly elastic.

• Question 7
30 seconds
Report an issue
Q.

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.

• Question 8
30 seconds
Report an issue
Q.

If the price of a product doubled and in response the quantity supplied also doubled then the PES is equal to