Economics Quiz: Price Elasticity of Supply

What does price elasticity of supply measure?

• Market competition

• Consumer preferences

• Responsiveness of quantity supplied to price changes

• Demand for a commodity

Which of the following represents a perfectly elastic supply?

• e_s < 1

• e_s = 1

• e_s = 0

• e_s > 1

What method is used to calculate price elasticity of supply at a given point on the supply curve?

• Geometric method

• Regression method

• Percentage method

• Algebraic method

Which factor influences the elasticity of supply based on the nature of the commodity?

• Perishability

• Cost of production

• Market demand

• Time period

In the long period, the elasticity of supply is generally considered to be:

• Perfectly inelastic

• More elastic

• Less elastic

• Unitary elastic

What is the value of price elasticity of supply if the supply curve intersects the x-axis in its positive range?

• e_s < 1

• e_s = 0

• e_s > 1

• e_s = 1

Which method is used to calculate the accurate value of price elasticity of supply?

• Regression method

• Geometric method

• Algebraic method

• Percentage method

What is the main feature of unitary elastic supply?

• e_s = 0

• e_s < 1

• e_s = 1

• e_s > 1

How does the cost of production of additional units influence the elasticity of supply?

• No effect on elasticity

• Increases elasticity

• Makes supply perfectly inelastic

• Decreases elasticity

What is the value of elasticity of supply in the short period?

• Perfectly elastic

• Unitary elastic

• More elastic

• Perfectly inelastic