Price Elasticity of Supply - AP Microeconomics
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What happens to supply elasticity in the short run with fixed production capacity?
What happens to supply elasticity in the short run with fixed production capacity?
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Less elastic. Fixed capacity limits ability to adjust quantity supplied.
Less elastic. Fixed capacity limits ability to adjust quantity supplied.
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Choose the supply elasticity: short run.
Choose the supply elasticity: short run.
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Inelastic. Limited time allows only minimal production adjustments.
Inelastic. Limited time allows only minimal production adjustments.
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Find the price elasticity of supply if $%\Delta Q_s = 5%$ and $%\Delta P = 10%$.
Find the price elasticity of supply if $%\Delta Q_s = 5%$ and $%\Delta P = 10%$.
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$E_s = 0.5$. Using formula: $E_s = \frac{5%}{10%} = 0.5$.
$E_s = 0.5$. Using formula: $E_s = \frac{5%}{10%} = 0.5$.
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What is the elasticity of supply for a commodity with a long production period?
What is the elasticity of supply for a commodity with a long production period?
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Inelastic. Long production time limits quick supply adjustments.
Inelastic. Long production time limits quick supply adjustments.
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Choose the elasticity when a price change leads to infinite quantity change.
Choose the elasticity when a price change leads to infinite quantity change.
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Perfectly elastic. Infinite responsiveness indicates perfectly elastic supply.
Perfectly elastic. Infinite responsiveness indicates perfectly elastic supply.
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What is the formula for calculating price elasticity of supply?
What is the formula for calculating price elasticity of supply?
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$E_s = \frac{%\Delta Q_s}{%\Delta P}$. Measures percentage change in quantity supplied per percentage change in price.
$E_s = \frac{%\Delta Q_s}{%\Delta P}$. Measures percentage change in quantity supplied per percentage change in price.
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Identify the measure of responsiveness of quantity supplied to a price change.
Identify the measure of responsiveness of quantity supplied to a price change.
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Price elasticity of supply. Measures how quantity supplied responds to price changes.
Price elasticity of supply. Measures how quantity supplied responds to price changes.
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State the term for $E_s > 1$ in price elasticity of supply.
State the term for $E_s > 1$ in price elasticity of supply.
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Elastic supply. Supply is responsive to price changes when $E_s > 1$.
Elastic supply. Supply is responsive to price changes when $E_s > 1$.
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State the term for $E_s < 1$ in price elasticity of supply.
State the term for $E_s < 1$ in price elasticity of supply.
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Inelastic supply. Supply is less responsive to price changes when $E_s < 1$.
Inelastic supply. Supply is less responsive to price changes when $E_s < 1$.
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State the term for $E_s = 1$ in price elasticity of supply.
State the term for $E_s = 1$ in price elasticity of supply.
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Unit elastic supply. Percentage changes in quantity and price are equal.
Unit elastic supply. Percentage changes in quantity and price are equal.
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What does a perfectly inelastic supply curve look like?
What does a perfectly inelastic supply curve look like?
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Vertical line. Quantity supplied cannot change regardless of price ($E_s = 0$).
Vertical line. Quantity supplied cannot change regardless of price ($E_s = 0$).
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What does a perfectly elastic supply curve look like?
What does a perfectly elastic supply curve look like?
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Horizontal line. Any price change causes infinite quantity response ($E_s = ∞$).
Horizontal line. Any price change causes infinite quantity response ($E_s = ∞$).
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Identify the elasticity when the supply curve is perfectly vertical.
Identify the elasticity when the supply curve is perfectly vertical.
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Perfectly inelastic. Vertical curve means zero responsiveness to price changes.
Perfectly inelastic. Vertical curve means zero responsiveness to price changes.
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Identify the elasticity when the supply curve is perfectly horizontal.
Identify the elasticity when the supply curve is perfectly horizontal.
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Perfectly elastic. Horizontal curve means infinite responsiveness to price changes.
Perfectly elastic. Horizontal curve means infinite responsiveness to price changes.
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Choose the elasticity when a price change leads to no quantity change.
Choose the elasticity when a price change leads to no quantity change.
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Perfectly inelastic. Zero responsiveness indicates perfectly inelastic supply.
Perfectly inelastic. Zero responsiveness indicates perfectly inelastic supply.
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What is the price elasticity of supply if the percentage change in quantity supplied equals the percentage change in price?
What is the price elasticity of supply if the percentage change in quantity supplied equals the percentage change in price?
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Unit elastic. Equal percentage changes result in $E_s = 1$.
Unit elastic. Equal percentage changes result in $E_s = 1$.
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Find the price elasticity of supply if $%\Delta Q_s = 10%$ and $%\Delta P = 5%$.
Find the price elasticity of supply if $%\Delta Q_s = 10%$ and $%\Delta P = 5%$.
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$E_s = 2$. Using formula: $E_s = \frac{10%}{5%} = 2$.
$E_s = 2$. Using formula: $E_s = \frac{10%}{5%} = 2$.
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Find the price elasticity of supply if $%\Delta Q_s = 5%$ and $%\Delta P = 10%$.
Find the price elasticity of supply if $%\Delta Q_s = 5%$ and $%\Delta P = 10%$.
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$E_s = 0.5$. Using formula: $E_s = \frac{5%}{10%} = 0.5$.
$E_s = 0.5$. Using formula: $E_s = \frac{5%}{10%} = 0.5$.
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Identify the factor that affects price elasticity of supply: time period.
Identify the factor that affects price elasticity of supply: time period.
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Time period. More time allows greater adjustment flexibility.
Time period. More time allows greater adjustment flexibility.
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Identify the factor that affects price elasticity of supply: availability of inputs.
Identify the factor that affects price elasticity of supply: availability of inputs.
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Availability of inputs. Scarce inputs limit ability to increase production.
Availability of inputs. Scarce inputs limit ability to increase production.
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Identify the factor that affects price elasticity of supply: flexibility of production.
Identify the factor that affects price elasticity of supply: flexibility of production.
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Flexibility of production. More flexible production enables greater quantity adjustments.
Flexibility of production. More flexible production enables greater quantity adjustments.
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What is the effect on supply elasticity if production is highly flexible?
What is the effect on supply elasticity if production is highly flexible?
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More elastic. Flexible production allows easier quantity adjustments to price changes.
More elastic. Flexible production allows easier quantity adjustments to price changes.
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What is the effect on supply elasticity if inputs are readily available?
What is the effect on supply elasticity if inputs are readily available?
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More elastic. Available inputs enable producers to respond more to price changes.
More elastic. Available inputs enable producers to respond more to price changes.
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What happens to supply elasticity in the short run with fixed production capacity?
What happens to supply elasticity in the short run with fixed production capacity?
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Less elastic. Fixed capacity limits ability to adjust quantity supplied.
Less elastic. Fixed capacity limits ability to adjust quantity supplied.
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What happens to supply elasticity in the long run with adjustable production capacity?
What happens to supply elasticity in the long run with adjustable production capacity?
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More elastic. Time allows adjustment of all production factors.
More elastic. Time allows adjustment of all production factors.
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State the relationship between time and elasticity of supply.
State the relationship between time and elasticity of supply.
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More time, more elastic. Longer time periods allow greater production adjustments.
More time, more elastic. Longer time periods allow greater production adjustments.
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Calculate $E_s$ if $%\Delta Q_s = 15%$ and $%\Delta P = 20%$.
Calculate $E_s$ if $%\Delta Q_s = 15%$ and $%\Delta P = 20%$.
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$E_s = 0.75$. Using formula: $E_s = \frac{15%}{20%} = 0.75$.
$E_s = 0.75$. Using formula: $E_s = \frac{15%}{20%} = 0.75$.
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Calculate $E_s$ if $%\Delta Q_s = 20%$ and $%\Delta P = 10%$.
Calculate $E_s$ if $%\Delta Q_s = 20%$ and $%\Delta P = 10%$.
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$E_s = 2$. Using formula: $E_s = \frac{20%}{10%} = 2$.
$E_s = 2$. Using formula: $E_s = \frac{20%}{10%} = 2$.
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Calculate $E_s$ if $%\Delta Q_s = 0%$ and $%\Delta P = 5%$.
Calculate $E_s$ if $%\Delta Q_s = 0%$ and $%\Delta P = 5%$.
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$E_s = 0$. Zero quantity change means perfectly inelastic supply.
$E_s = 0$. Zero quantity change means perfectly inelastic supply.
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Calculate $E_s$ if $%\Delta Q_s = 5%$ and $%\Delta P = 5%$.
Calculate $E_s$ if $%\Delta Q_s = 5%$ and $%\Delta P = 5%$.
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$E_s = 1$. Equal percentage changes yield unit elastic supply.
$E_s = 1$. Equal percentage changes yield unit elastic supply.
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