Price Elasticity of Supply Quiz by Shubhrata Shrestha | May 22, 2025 | 0 comments Price Elasticity of Supply Quiz 1. What does a PES value greater than 1 indicate? A. Inelastic supply B. Elastic supply C. Perfectly inelastic supply D. Unitary supply None 2. The formula for price elasticity of supply is: A. % Change in Price ÷ % Change in Quantity Supplied B. Quantity Supplied ÷ Price C. % Change in Quantity Supplied ÷ % Change in Price D. Price ÷ Quantity Supplied None 3. Which factor is most likely to make PES more elastic? A. Longer production time B. Fixed resources C. Spare production capacity D. No inventories None 4. A PES of 0 means that supply is: A. Perfectly elastic B. Inelastic C. Perfectly inelastic D. Unitary elastic None 5. Which industry is most likely to have inelastic supply in the short run? A. Car manufacturing B. Software development C. Agriculture D. Handicrafts None 6. If the PES is less than 1, supply is considered: A. Inelastic B. Elastic C. Perfectly elastic D. Perfectly inelastic None 7. What does a perfectly elastic supply curve look like? A. Vertical B. Diagonal upward C. Horizontal D. Downward sloping None 8. Why is time an important factor in PES? A. It determines demand B. It allows for consumer reaction C. It affects how much firms can raise prices D. It allows firms to adjust supply more easily over longer periods None 9. Which of the following does NOT affect PES? A. Time B. Availability of substitutes C. Factor mobility D. Inventory levels None 10. A business with a highly elastic supply will: A. Increase prices regardless of demand B. Struggle to meet rising demand C. Respond quickly to price increases by raising output D. Have low levels of inventory None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
