Price Elasticity of Supply

What are the determinants of price elasticity of supply?

• Consumer preferences

• Brand reputation

• Production time, availability of resources, flexibility of production processes, ability to store goods

• Color of the product

How do you calculate price elasticity of supply?

• Price Elasticity of Supply = (% Change in Quantity Supplied) / (% Change in Price)

• Price Elasticity of Supply = (Change in Quantity Demanded) / (Change in Price)

• Price Elasticity of Supply = (% Change in Quantity Supplied) * (% Change in Price)

• Price Elasticity of Supply = (Change in Quantity Supplied) / (Change in Price)

The degree of price elasticity of supply includes the following except

• perfectly elastic

• Unique elastic

• Elastic

• Perfectly inelastic

• Inelastic

Which factors affect the price elasticity of supply?

• Production time and availability of resources

• Price of complementary goods

• Consumer income

• Consumer preferences

Which of the following statement is true?

• Price elasticity of supply is inversely related to the price.

• Price elasticity of supply is more elastic in the long run compared to the short run.

• Price elasticity of supply remains constant regardless of time.

• Price elasticity of supply is more elastic in the short run compared to the long run.

How does technology impact price elasticity of supply?

• Technology can make the supply curve more elastic by enabling quicker adjustments to changes in demand and reducing production costs.

• Technology increases supply elasticity by slowing down adjustments to changes in demand

• Technology decreases supply elasticity by increasing production costs

• Technology has no impact on price elasticity of supply

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

• Elastic

• Inelastic

• Unitary elasticity

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 good warehousing facilities and can supply more when prices are rising, then supply will be

• Inelastic

• Unitary elasticity

• Elastic

• 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, and supply will be ...

• Inelastic

• Elastic

• Unitary Elasticity

• None of the above