6.2 - Price Elasticity of Supply (PES)
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating PES?
💡 Hint: Look for how percentage changes relate in economics.
If a producer responds to price increases by increasing quantity supplied, is the supply elastic or inelastic?
💡 Hint: Consider the responsiveness to price changes.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does PES stand for?
💡 Hint: Think about the economic concept related to supply.
When is supply considered elastic?
💡 Hint: Focus on the definitions of elasticity.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
If the price of a luxury car increases by 30% but the quantity supplied only increases by 10%, what does this signify in terms of PES? Discuss the implications.
💡 Hint: Consider the relationship between percentage changes.
Evaluate the effects of a technology improvement on the PES of smartphones. What would happen, and why?
💡 Hint: Think about how advancements in production speed affect supply.
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