Price Elasticity of Supply - Economics

Name the two MAIN types of supply (not involving P.E.S.)

• Inelastic supply

• Fixed supply

• Normal supply

• market supply

Define elastic supply (price elastic)

• change in price causes a sensitive response in quantity demanded

• a change in price causes a small change in quantity supplied

• change in price causes a sensitive response in the quantity supplied

• change in price causes an insensitive response in quantity demanded

What is the equation for P.E.S.

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What is the definition for "fast-moving consumer good"?

• goods bought by people which involve fast movement

• goods that sell very quickly in small amounts

• goods that sell very quickly in large amounts

• goods that are transported quickly in large amounts

How does the graph look like if the P.E.S. equals to 0

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What is the definition of wholesalers

• people/company that sells every good to the public and businesses in equal amounts

• person that sells goods in small quantities to businesses rather than to the general public

• company that sells goods in large quantities to the general public instead of businesses

• person/company that sells goods in large quantities to businesses rather than to the general public

What does it mean when P.E.S. is unit elastic

• quantity demanded changes same amount as the change in price.

• the %change in quantity supplied/% change in price equals to ∞

• quantity supplied changes according to the same percentage as the change in price.

• the %change in quantity supplied/% change in price equals to -1

What does this graph show

• Perfectly Elastic supply

• Relatively elastic demand

• Relatively elastic supply

• Relatively inelastic supply

What is the equation for Total Revenue

• Price times Quantity Demanded

• Price divided by quantity demanded

• Quantity demanded divided by price

• Quantity supplied times price

How does TIME affect PES/Supply?

• shorter the time period considered, more inelastic supply will be

• Longer the time period considered, more elastic supply will be

• Longer the time period considered, more inelastic supply will be

• shorter the time period considered, more elastic supply will be