Practice Price Elasticity of Supply - 4.7 | 4. The Theory of the Firm under Perfect Competition | CBSE 12 Introductory Microeconomics
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4.7 - Price Elasticity of Supply

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does the price elasticity of supply measure?

💡 Hint: Think about what suppliers consider when prices fluctuate.

Question 2

Easy

If a price increase leads to no change in quantity supplied, how elastic is the supply?

💡 Hint: Recall the definition of perfectly inelastic supply.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does a price elasticity of supply greater than 1 indicate?

  • Supply is elastic
  • Supply is inelastic
  • Supply is unitary

💡 Hint: Recall the definitions of elastic and inelastic supply.

Question 2

True or False: A perfectly inelastic supply curve is represented by a vertical line.

  • True
  • False

💡 Hint: Think about how inelastic supply behaves graphically.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A firm sees its production increase from 150 to 300 units when the price of its good increases from Rs 20 to Rs 50. Calculate the price elasticity of supply and assess the supply's responsiveness.

💡 Hint: Use the elasticity formula to analyze the changes.

Question 2

If a market undergoes a technological innovation that reduces production costs, discuss how this will influence the price elasticity of supply.

💡 Hint: Consider the implications of lower costs on firm behavior.

Challenge and get performance evaluation