Lesson 4.1.3.4

4.1.3.4 Price elasticity of supply Quiz: AQA Economics, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.1.3.4, Price elasticity of supply: 20 multiple choice questions for the AQA Economics (7136), Unit 1: Individuals, firms, markets and market failure, written with Revision Ninja.

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The 20 questions

  1. What does price elasticity of supply measure the responsiveness of quantity supplied to?

    • Price
    • Production cost
    • Consumer preference
    • Income

  2. The price of a good rises by 10% and the quantity supplied rises by 25%. What is the PES?

    • 15.
    • 2.5.
    • 0.4.
    • 0.25.

  3. Price rises by 20% and quantity supplied increases by 5%. What is the price elasticity of supply?

    • 4.00
    • 0.20
    • 0.25
    • 1.25

  4. Which factor causes the price elasticity of supply of a product to be inelastic?

    • Spare capacity
    • High stock levels
    • Mobile labour
    • Fixed capacity

  5. Which factor increases the price elasticity of supply of a good?

    • Spare capacity
    • Fixed capacity
    • Perishable stock
    • Long production cycles

  6. What is the numerical value of price elasticity of supply for a perfectly inelastic supply curve?

    • -1
    • 1
    • Infinity
    • 0

  7. What shape is a perfectly price elastic supply curve on a standard diagram?

    • Vertical
    • Horizontal
    • Downward sloping
    • Upward sloping

  8. Why is supply generally more price elastic in the long run than in the short run?

    • Factors are variable
    • Costs are zero
    • Demand is fixed
    • Factors are fixed

  9. An agricultural crop takes a year to harvest. What is its short-run price elasticity of supply?

    • Inelastic
    • Unit elastic
    • Perfectly elastic
    • Elastic

  10. Using a PES of 2.5, what is the expected percentage change in quantity supplied if price rises by 8%?

    • A rise of 0.32%.
    • A rise of 20%.
    • A rise of 3.2%.
    • A fall of 20%.

  11. If supply is price inelastic, on whom does the main burden of an indirect tax fall?

    • Consumers
    • Retailers
    • Producers
    • Government

  12. Which factor is a primary constraint limiting a firm from increasing its elasticity of supply?

    • Falling prices
    • Capacity limits
    • Low indirect taxes
    • High demand

  13. If PES is 0.5 and price rises by 20%, by what percentage does quantity supplied rise?

    • 2.5%
    • 40%
    • 10%
    • 20%

  14. Which factor explains why price elasticity of supply differs across different industries?

    • Consumer income
    • Cross elasticity
    • Brand loyalty
    • Factor mobility

  15. Which factor enables a firm to maintain elastic supply in the short run?

    • Specialised labour
    • Fixed capital
    • Long harvest times
    • High stock levels

  16. If price rises by 15% and quantity supplied rises by 30%, what is the price elasticity of supply?

    • 2.0
    • 0.5
    • 4.5
    • 1.5

  17. How is a price elasticity of supply (PES) value of zero described?

    • Unit elastic
    • Perfectly inelastic
    • Relatively elastic
    • Perfectly elastic

  18. Which factor makes the price elasticity of supply for a product more elastic?

    • Long production times
    • Scarce raw materials
    • High stock levels
    • Limited spare capacity

  19. A rise in the price of a product leads to a 4% increase in quantity supplied. What is the PES if the price rose by 8%?

    • 2, price elastic.
    • 3.2, price elastic.
    • 0.5, price inelastic.
    • 0.32, price inelastic.

  20. Which factor directly changes the price elasticity of supply rather than shifting the supply curve?

    • Production subsidies
    • Spare capacity availability
    • Raw material costs
    • Indirect tax increases

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