Price Elasticity of Supply (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does price elasticity of supply (PES) measure?
What does price elasticity of supply (PES) measure?
Responsiveness of Qs to price changes
If price rises by 10% and quantity supplied increases by 15%, what is the PES?
If price rises by 10% and quantity supplied increases by 15%, what is the PES?
Why is PES typically positive, unlike price elasticity of demand?
Why is PES typically positive, unlike price elasticity of demand?
Higher prices encourage more supply
If PES = 0.4, what type of supply elasticity is this?
If PES = 0.4, what type of supply elasticity is this?
Inelastic supply
A straight-line supply curve through the origin has what elasticity?
A straight-line supply curve through the origin has what elasticity?
Unit elastic (PES = 1) at all points
How does spare capacity affect PES?
How does spare capacity affect PES?
More spare capacity makes supply elastic
In the market period, what is supply elasticity?
In the market period, what is supply elasticity?
Perfectly inelastic (vertical curve)
What is the UK's price elasticity of supply for housing?
What is the UK's price elasticity of supply for housing?
A supply curve intersecting the price axis indicates what?
A supply curve intersecting the price axis indicates what?
Elastic supply (PES > 1) at all points
Why do agricultural products like potatoes have inelastic supply short-term?
Why do agricultural products like potatoes have inelastic supply short-term?
Must wait for next growing season