Practice: Price Elasticity of Supply

Negative

Positive

0.25

0.5

0.75

1

0.25

0.5

0.75

1

0.3

0.5

0.7

0.9

The quantity supplied of laptop computers increases when the price increases.

The quantity supplied of laptop computers increases when there are more suppliers.

The quantity supplied of laptop computers decreases when consumers’ income falls.

The quantity supplied of laptop computers increases by 50% when the price increases by 30%.

perfectly inelastic.

perfectly elastic.

unitary elastic.

inelastic.

There is an excess supply of movie tickets.

If the price of the movie tickets decreases, the total revenue of the cinema must increase.

The demand for the movie tickets is elastic.

The supply of the movie tickets is perfectly inelastic.

It is not difficult to enter the market of organic vegetables.

There is a lot of spare farmland to grow organic vegetables.

Highly specialised techniques are required for growing organic vegetables.

People are not used to eating organic vegetables.