Price elasticity of supply

Where PES < 1

• Supply is price elastic

• Supply is price inelastic

in the short term..

• supply may be more price elastic

• supply may be more price inelastic

if a firm's products are NOT perishable then...

• supply is may be price elastic

• supply is may be price inelastic

if supply is price elastic...

• producers find it hard to change their output without a significant rise in cost or a time delay

• producers can easily increase their output without a significant rise in cost or a time delay

Advances in production technology would lead to an...

• outward shift in the supply curve

• inward shift in the supply curve

If a firm's production process is relatively complex then...

• Supply may be more price inelastic

• supply may be more price elastic

The supply will be inelastic when plenty of firms are involved in the industry.

• True

• False

If the elasticity is equal to 1, this is called unitary elastic

• True

• False

A supply curve that is linear and parallel to the quantity axis has a value of elasticity that is infinite

• True

• False

supply curve shape refer to

• elastic supply

• unitary elastic supply

• perfectly inelastic supply

• perfectly elastic supply