Price Elasticity of Supply

If the firm have more spare capacity, then it will be possible for the firm to increase supply. This means supply is

• Elastic

• Inelastic

• Unitary elasticity

During recession price elasticity of supply will be

• Elastic

• Inelastic

• Unitary elasticity

During recession there more spare capacity, meaning there will be more resources unused due to less demand from the consumers

• True

• False

• None of the above

When the price is more and the firms are able to produce more to take the benefit of this increase in price, then supply is said to be....

• Elastic

• Inelastic

• Unitary elasticity

• None of the above

Products like pencils, books, and other school stationaries are easy to store in a warehouse. If a firm producing such goods and has a good warehousing facilities and can supply more when prices are rising, then supply will be

• Inelastic

• Unitary elasticity

• Elastic

• None of the above

Firms producing perishable items with less warehousing facility will be able to respond to increase in price and and they can supply more to meet the increase in demand. Is the statement true or false

• False

• True

If there are more firms producing more luxury items then supply of luxury items will increase. In such case, if there is any increase in price, the firms can supply more to make use of this rise in price.

• True

• False

If there are more firms producing more luxury items then supply of luxury items will increase. In such case, if there is any increase in price, the firms can supply more to make use of this rise in price.Supply will be....

• Elastic

• Inelastic

• Unitary Elasticity

• None of the above

In agriculture farming, it takes time to increase the supply of fruits and vegetables as the harvesting needs time. Hence supply will be less responsive to increase in price,nad supply will be ...

• Inelastic

• Elastic

• Unitary Elasticity

• None of the above

Supply is more price elastic if more time is available as the firms can adjust the supply and increase the supply when price are increasing.

• True

• False