Lesson 1.2.5
1.2.5 Elasticity of supply Quiz: Pearson Edexcel Economics, Unit 1
20 questions
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Lesson 1.2.5, Elasticity of supply: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 1: Theme 1: Introduction to markets and market failure, written with Revision Ninja.
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The 20 questions
-
What is the formula for calculating price elasticity of supply?
- %ΔQD ÷ %ΔP
- %ΔP ÷ %ΔQD
- %ΔP ÷ %ΔQS
- %ΔQS ÷ %ΔP
-
If price rises by 20% and quantity supplied rises by 30%, what is the PES?
- +1.0
- +1.5
- +0.67
- +6.0
-
If price rises by 10% and quantity supplied rises by 2%, what is the PES?
- +0.5
- +2.0
- +0.2
- +5.0
-
Which numerical value represents perfectly inelastic price elasticity of supply?
- Infinity
- One
- Minus one
- Zero
-
Which factor makes the price elasticity of supply for a good more elastic?
- High stock levels
- Long production lags
- Scarce raw materials
- Full capacity utilisation
-
Which factor makes the price elasticity of supply for a good more inelastic?
- High stock levels
- Long production lags
- Unused spare capacity
- Mobile factor inputs
-
Why is price elasticity of supply higher in the long run than short run?
- Demand is fixed
- Factors are fixed
- Costs are fixed
- Factors are variable
-
What shape is a supply curve when price elasticity of supply is perfectly elastic?
- Upward sloping
- Vertical
- Horizontal
- Downward sloping
-
What is the short-run price elasticity of supply for agricultural crops like wheat?
- Relatively inelastic
- Perfectly inelastic
- Unitary elastic
- Perfectly elastic
-
When demand falls for a good with elastic supply, what happens to price?
- Small price rise
- Large price fall
- Large price rise
- Small price fall
-
Why does the ability to store goods cheaply increase price elasticity of supply?
- Slower factor mobility
- Higher production costs
- Quick inventory release
- Lower profit margins
-
Which metric measures the responsiveness of quantity supplied to a price change?
- Income elasticity of demand
- Cross elasticity of demand
- Price elasticity of supply
- Price elasticity of demand
-
What does a price elasticity of supply value equal to 1 indicate?
- Relatively inelastic supply
- Perfectly inelastic supply
- Perfectly elastic supply
- Unit elastic supply
-
Output rises by 15% following a 5% price increase. What is the value of PES?
- 75
- 3
- 10
- 0.33
-
When supply is price elastic, how does output respond to an indirect tax?
- Rises significantly
- Remains unchanged
- Falls slightly
- Falls significantly
-
If PES is 0.6, by what percentage does quantity supplied rise when price rises 10%?
- 16.6%
- 6%
- 60%
- 0.06%
-
What limits a firm's elasticity of supply in the short run but not long run?
- Variable factors
- Consumer demand
- Decreasing returns
- Fixed factors
-
Which formula is used to calculate the price elasticity of supply?
- %ΔP / %ΔQs
- %ΔQs / %ΔP
- %ΔQd / %ΔP
- %ΔP / %ΔY
-
A firm has a price elasticity of supply of 0.8. How is supply described?
- Unit elastic
- Perfectly inelastic
- Relatively inelastic
- Relatively elastic
-
What factor makes a firm's price elasticity of supply more elastic?
- Long production periods
- Perishable finished goods
- High spare capacity
- Full capacity utilisation
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