Practice Price Elasticity Of Supply (pes) (6.2) - Microeconomics - IB 10 Individuals & Societies

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6 sample questions

Question 1.
What is the formula for calculating PES?
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Look for how percentage changes relate in economics.
Question 2.
If a producer responds to price increases by increasing quantity supplied, is the supply elastic or inelastic?
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Consider the responsiveness to price changes.
3Question 3.
What does PES stand for?
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Think about the economic concept related to supply.
4Question 4.
When is supply considered elastic?
- When PES < 1
- When PES = 1
- When PES > 1
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Focus on the definitions of elasticity.
Question 5.
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.
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Consider the relationship between percentage changes.
Question 6.
Evaluate the effects of a technology improvement on the PES of smartphones. What would happen, and why?
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Think about how advancements in production speed affect supply.

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