Mod 2.4: Price Elasticity of Supply

A perfectly inelastic supply curve is:

• negatively sloped.

• positively sloped.

• horizontal.

• vertical.

• U-shaped.

What happens to total revenue when supply increases?

• no change

• decreases

• increases

• doubles

• cuts by half

If the quantity supplied falls by 10% in response to a 20% change in price, the price elasticity of supply equals

• 0.5

• 2

• -0.5

• -2

• 0

When the price elasticity of supply is greater than 1, supply is which of the following?

• Inelastic

• Unitary elastic

• Elastic

• Perfectly elastic

• Perfectly inelastic

If farmers would supply an unlimited quantity of asparagus for $3 per pound, but none for less than that, the price elasticity of supply for asparagus is ____.

• perfectly inelastic

• inelastic

• elastic

• perfectly elastic

• 1