Price elasticity of supply
2.3What the syllabus asks of you
- definition of price elasticity of supply (PES)
- formula for and calculation of price elasticity of supply
- significance of relative percentage changes, the size and sign of the coefficient of price elasticity of supply
- factors affecting price elasticity of supply
- implications for speed and ease with which firms react to changed market conditions
Drill this topic
Every question on Price elasticity of supply, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
52 questions
1May / June 2026 · Paper 11 · Q9Show mark scheme →
Alevel of spare capacity
Bprice of complementary products
Cresources available
Dtime period over which elasticity is measured
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2May / June 2026 · Paper 12 · Q6Show mark scheme →
A3%
B7%
C30%
D33.3%
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3May / June 2026 · Paper 13 · Q8Show mark scheme →
AS1
BS2
CS3
DS4
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4May / June 2026 · Paper 14 · Q6Show mark scheme →
A150 units
B375 units
C400 units
D450 units
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5Oct / Nov 2025 · Paper 11 · Q9Show mark scheme →
AThe good has constant opportunity cost.
BThe good is an inferior good.
CThe price elasticity of demand is equal to one.
DThe price elasticity of supply is equal to zero.
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6Oct / Nov 2025 · Paper 13 · Q10Show mark scheme →
A2.5
B2.0
C0.6
D0.5
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7Oct / Nov 2025 · Paper 14 · Q6Show mark scheme →
Aavailability of stocks
Bpercentage of income spent on the product
Cprice of substitutes
Dwage rate
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8May / June 2025 · Paper 11 · Q8Show mark scheme →
AAlternative supplies can be flown in from foreign producers.
BA positive price change encourages a positive output change along the supply curve.
CFresh vegetables has a horizontal supply curve.
DThere is a seasonal time lag involved in planting and harvesting more fresh vegetables.
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9May / June 2025 · Paper 12 · Q8Show mark scheme →
Ashort run 0.5, long run 2.0
Bshort run 0.5, long run 1.4
Cshort run 2.0, long run 0.7
Dshort run 2.0, long run 0.5
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10May / June 2025 · Paper 13 · Q6Show mark scheme →
Aperfectly elastic
Bperfectly inelastic
Cunit elastic and negative
Dunit elastic and positive
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11May / June 2025 · Paper 13 · Q11Show mark scheme →
AThe firm can easily find new land as required.
BThe firm is competing with many other construction firms.
CThe firm needs time to hire the highly skilled labour required.
DThere is a lack of close substitutes for nuclear power.
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12May / June 2025 · Paper 14 · Q9Show mark scheme →
Ahighly elastic in both the short and the long run as rice is an essential product
Bhighly elastic in the short run and more inelastic in the long run as production methods improve
Chighly inelastic in both the short and the long run as the land area of a country is fixed
Dhighly inelastic in the short run and more elastic in the long run as it takes time to plant rice
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13Feb / March 2025 · Paper 12 · Q6Show mark scheme →
Athe level of producer surplus
Bthe time period under consideration
Cthe total income spent on the good
Dwhether the good is a necessity
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14Oct / Nov 2024 · Paper 11 · Q10Show mark scheme →
Across elasticity of demand
Bincome elasticity of demand
Cprice elasticity of demand
Dprice elasticity of supply
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15Oct / Nov 2024 · Paper 12 · Q7Show mark scheme →
Askilled; high
Bskilled; low
Cunskilled; high
Dunskilled; low
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16Oct / Nov 2024 · Paper 12 · Q9Show mark scheme →
AA
BB
CC
DD
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17Oct / Nov 2024 · Paper 13 · Q8Show mark scheme →
A0
B0.5
C1.0
D2.0
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18May / June 2024 · Paper 13 · Q6Show mark scheme →
Aa fast-food restaurant
Ba household cleaning service
Ca newspaper printer
Dan oil exploration company
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19May / June 2024 · Paper 13 · Q14Show mark scheme →
Afrom elastic (>1) to inelastic (<1)
Bfrom inelastic (<1) to elastic (>1)
Cfrom inelastic (<1) to unitary (=1)
Dfrom unitary (=1) to elastic (>1)
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20Feb / March 2024 · Paper 12 · Q9Show mark scheme →
A0.3%
B3.0%
C13.3%
D30%
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21Oct / Nov 2023 · Paper 11 · Q9Show mark scheme →
A0.5
B1.0
C2.0
D5.0
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22Oct / Nov 2023 · Paper 11 · Q12Show mark scheme →
AFirms reduce their expenditure on the training of workers.
BImport duties are increased on machines that increase the speed of production.
CThe government introduces buffer stock schemes for the goods produced by the firm.
DTrade unions become strong, leading to poor labour productivity.
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23Oct / Nov 2023 · Paper 13 · Q6Show mark scheme →
AQuantity supplied is infinite at the given price.
BQuantity supplied is infinite below the given price.
CQuantity supplied remains constant at all prices.
DQuantity supplied is perfectly inelastic.
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24Oct / Nov 2023 · Paper 13 · Q11Show mark scheme →
A75
B110
C125
D150
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25May / June 2023 · Paper 11 · Q7Show mark scheme →
A6000
B60 000
C114 000
D140 000
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26May / June 2023 · Paper 12 · Q11Show mark scheme →
APES is greater than unity at all points along the supply curve.
BPES is the same at all points along the supply curve.
CPES is elastic when the price is low and becomes more inelastic when the price rises.
DPES rises when the supply rises.
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27May / June 2023 · Paper 13 · Q12Show mark scheme →
AW has elasticity of 0 that will rise as price rises.
BX has elasticity greater than 1 that will be constant as price rises.
CY has elasticity greater than 1 that will fall as price rises.
DZ has elasticity of 0 that is constant as quantity rises.
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28May / June 2023 · Paper 13 · Q13Show mark scheme →
AX has more substitutes than Y.
BA 20% price fall would lead to a greater decrease in production of Y than of X.
CAfter a price rise, it is more difficult to increase Y's output than X's.
DAfter a price fall of 10%, more people would buy X than would buy Y.
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29Feb / March 2023 · Paper 12 · Q6Show mark scheme →
Avertical supply curve
Bupward sloping supply curve with positive price intercept
Cupward sloping supply curve through the origin
Dhorizontal supply curve
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30Oct / Nov 2022 · Paper 11 · Q7Show mark scheme →
AIt is a measure of how the price of a good responds to a change in the quantity supplied.
BIt is a measure of how the quantity supplied of a good responds to a change in its price.
CIt is a measure of how the supply of a good responds to a change in its cost of production.
DIt is a measure of how the supply of good X responds to a change in the price of good Y.
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31Oct / Nov 2022 · Paper 11 · Q12Show mark scheme →
Awhen the firm finds it difficult to recruit new labour
Bwhen the firm has a large quantity of stock
Cwhen the firm is operating in the short run
Dwhen the firm is operating near to full capacity
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32Oct / Nov 2022 · Paper 12 · Q7Show mark scheme →
A0.3%
B3.0%
C13.3%
D30%
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33Oct / Nov 2022 · Paper 12 · Q9Show mark scheme →
AThe price elasticity of supply is different at every point along both S1 and S2.
BThe price elasticity of supply of S1 is elastic and S2 is unit elastic.
CThe price elasticity of supply of S1 is inelastic and S2 is unit elastic.
DThe price elasticity of supply is unit elastic at every point along both S1 and S2.
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34Oct / Nov 2022 · Paper 12 · Q12Show mark scheme →
AIt has a high opportunity cost.
BIt has a non-perishable nature.
CIt is classed as an inferior good.
DIt is classed as a luxury good.
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35Oct / Nov 2022 · Paper 13 · Q9Show mark scheme →
Aa government decision to import crops at times of shortage
Ban efficient use of fertilisers causing crop production to rise
Cthe storage of excess production for future sale
Dthe very long time required to produce additional output
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36May / June 2022 · Paper 11 · Q9Show mark scheme →
Athe change in the quantity supplied when a price changes
Bthe change in the quantity supplied when demand changes
Cthe comparison of the proportionate change in supply to the proportionate change in demand
Dthe comparison of the proportionate change in supply to the proportionate change in price
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37May / June 2022 · Paper 12 · Q5Show mark scheme →
ADemand for the product comes from a wide range of customers.
BProducers in closely related industries can easily switch to making the product.
CManufacture of the product requires highly skilled labour.
DThe main raw material used in the production of the product is in abundant supply.
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38May / June 2022 · Paper 13 · Q6Show mark scheme →
Anew drug: cost per unit is low; printed newspapers: cost per unit is high
Bnew drug: discovery is by chance; printed newspapers: takes longer to produce
Cnew drug: research and development essential; printed newspapers: excess capacity in printing
Dnew drug: similar products available; printed newspapers: similar products unavailable
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39May / June 2022 · Paper 14 · Q7Show mark scheme →
Aan increase in advertising the product
Ban increase in the firm's ability to substitute capital for labour
Can increase in the time during which the product can be stored
Dan increase in the time required to produce the product
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40May / June 2022 · Paper 14 · Q8Show mark scheme →
Agood X: equal to 1; good Y: equal to 1; good Z: equal to 1
Bgood X: equal to 1; good Y: greater than 1; good Z: greater than 1
Cgood X: less than 1; good Y: equal to 1; good Z: greater than 1
Dgood X: less than 1; good Y: greater than 1; good Z: greater than 1
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41Feb / March 2022 · Paper 12 · Q10Show mark scheme →
AThe firm has available stock.
BThe firm has no excess capacity.
CThe firm operates in a competitive market.
DThe firm raises its price by 10% and its total revenue increases by 15%.
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42Oct / Nov 2021 · Paper 11 · Q9Show mark scheme →
ACurve 1 has constant infinite elasticity.
BCurve 2 has elasticity greater than curve 4 over its whole length.
CCurve 3 has increasing elasticity as price rises.
DCurve 4 has decreasing elasticity as price rises.
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43Oct / Nov 2021 · Paper 11 · Q10Show mark scheme →
AAll the costs and benefits of consumption are reflected in OP1.
BAt OP1 consumer expenditure is greater than the firm's revenue.
CAt OP1 the price elasticity of supply is equal to one.
DThe market will not clear at a price of OP1.
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44Oct / Nov 2021 · Paper 11 · Q11Show mark scheme →
AIt is an agricultural good that has an annual growing cycle and requires a cool climate.
BIt is an agricultural good that is perishable and very expensive to store.
CIt is a manufactured good that uses unskilled labour and there is unemployment in the economy.
DIt is a manufactured good that uses capital-intensive production and it is currently at full capacity.
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45Oct / Nov 2021 · Paper 12 · Q5Show mark scheme →
Aa straight line that intersects the horizontal axis
Ba straight line that intersects the vertical axis
Ca straight line that passes through the origin
Da straight line that is vertical to the horizontal axis
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46Oct / Nov 2021 · Paper 12 · Q12Show mark scheme →
AAs price rises, the price elasticity of supply of S2 will increase.
BAt any price, the price elasticity of supply of S1 will be less than that of S3.
CAt any price, the price elasticity of supply of S2 will be higher than that of S3.
DThe price elasticity of supply of each curve is constant.
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47Oct / Nov 2021 · Paper 13 · Q14Show mark scheme →
Ahigh price elasticity of supply
Blow price elasticity of supply
Cunitary price elasticity of supply
Dperfectly inelastic price elasticity of supply
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48May / June 2021 · Paper 11 · Q12Show mark scheme →
Aquantity supplied rises by greater percentage than price; total revenue falls
Bquantity supplied rises by greater percentage than price; total revenue rises
Cquantity supplied rises by smaller percentage than price; total revenue falls
Dquantity supplied rises by smaller percentage than price; total revenue rises
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49May / June 2021 · Paper 12 · Q5Show mark scheme →
AIt cannot change in the short run.
BIt increases as the time period lengthens.
CIt is infinite in the momentary time period.
DIt is zero in the long run.
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50May / June 2021 · Paper 13 · Q7Show mark scheme →
AThe product has a low opportunity cost.
BThe product is highly perishable.
CThe product is classed as an inferior good.
DThe product is considered to be a necessity.
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51May / June 2021 · Paper 13 · Q8Show mark scheme →
Aa 2.5% fall in total revenue
Ba 25% rise in total revenue
Ca 2.5% fall in quantity supplied
Da 25% rise in quantity supplied
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52Feb / March 2021 · Paper 12 · Q10Show mark scheme →
Ahighly perishable goods elastic; goods that have low stocks elastic
Bhighly perishable goods elastic; goods that have low stocks inelastic
Chighly perishable goods inelastic; goods that have low stocks elastic
Dhighly perishable goods inelastic; goods that have low stocks inelastic
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