Price elasticity of supply (PES) — Paper 1 · IGCSE Economics 0455

8 The diagram shows the supply curve for a good. S 4 price ($) 2 0 10 20 30 quantity (units) What is the price elasticity of supply when the price rises from $2 to $4? A 0.2 B 0.5 C 1 D 2

1 marks

Answer: B

This question in 0455/11 May/June 2010

9 The diagram shows the supply curve for a good. S 4 price ($) 2 0 10 20 30 quantity (units) What is the price elasticity of supply when the price rises from $2 to $4? A 0.2 B 0.5 C 1 D 2

1 marks

Answer: B

This question in 0455/12 May/June 2010

5 There are a fixed number of seats at a concert. Most of the audience would continue to attend even if the seat prices were increased. Which demand and supply diagram represents this situation? A B C D S D D S price D price S price price S D O quantity O quantity O quantity O quantity

1 marks

Answer: C

This question in 0455/11 May/June 2013

14 There are a fixed number of seats at a concert. Most of the audience would continue to attend even if the seat prices were increased. Which demand and supply diagram represents this situation? A B C D S D D S price D price S price price S D O quantity O quantity O quantity O quantity

1 marks

Answer: C

This question in 0455/13 May/June 2013

16 Which change would make the supply of a product more price elastic? A an increase in the number of close substitutes for the product B an increase in the proportion of firms working at full capacity C a reduction in the time taken to make the product D a reduction in the time that the product can be stored

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2013

7 Which change would make the supply of a product more price elastic? A an increase in the number of close substitutes for the product B an increase in the proportion of firms working at full capacity C a reduction in the time taken to make the product D a reduction in the time that the product can be stored

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2013

7 Many people are life-long, devoted fans of the Los Angeles Lakers basketball team in the United States. The team’s stadium can seat 19 000 spectators and tickets are always sold out. What does this suggest about the price elasticity of demand and the price elasticity of supply of tickets to watch the Lakers play? price elasticity of demand price elasticity of supply A highly elastic perfectly elastic B highly elastic perfectly inelastic C highly inelastic perfectly elastic D highly inelastic perfectly inelastic

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2013

6 A product has a price elasticity of supply of +2. A change in price causes the quantity supplied to change from 100 units to 120 units. What is the price change? A a fall of 10% B a fall of 40% C a rise of 10% D a rise of 40%

1 marks

Answer: C

This question in 0455/12 May/June 2015

6 In recent years, the demand for cars in Indonesia has become more price inelastic while the supply of cars has become more price elastic. Which combination of events could have caused these changes? quality of public time taken to transport produce a car A decreased decreased B decreased increased C increased decreased D increased increased

1 marks

Answer: A

This question in 0455/13 May/June 2015

4 In response to an increase in price from $5 per kilo to $6 per kilo a chicken farmer increased supply from 400 kilos to 500 kilos per week. What is the price elasticity of supply? A 0.8 B 0.9 C 1.2 D 1.25

1 marks

Answer: D

This question in 0455/12 May/June 2017

7 The diagram shows the supply curve for a good. S price ($) 4 2 0 10 20 30 quantity (units) What is the price elasticity of supply when the price rises from $2 to $4? A 0.2 B 0.5 C 1 D 2

1 marks

Answer: B

This question in 0455/11 May/June 2018

7 The diagram shows the supply curve for a good. S price ($) 4 2 0 10 20 30 quantity (units) What is the price elasticity of supply when the price rises from $2 to $4? A 0.2 B 0.5 C 1 D 2

1 marks

Answer: B

This question in 0455/12 May/June 2018

7 The diagram shows the supply curve for a good. S price ($) 4 2 0 10 20 30 quantity (units) What is the price elasticity of supply when the price rises from $2 to $4? A 0.2 B 0.5 C 1 D 2

1 marks

Answer: B

This question in 0455/13 May/June 2018

7 The table shows the effect of a change in the market price from $5 to $6 on the supply of mobile (cell) phones. price supply ($) (units) 5 10 000 6 15 000 Which statement about the price elasticity of supply of mobile phones is correct? A Price elasticity of supply is 0.4. B Price elasticity of supply is 2.5. C Supply is perfectly elastic. D There is unit elasticity.

1 marks

Answer: B

This question in 0455/12 Feb/March 2019

7 The table shows the quantity that producers are willing to supply at different price levels. price quantity ($) supplied 120 20 150 40 180 80 If the price increases from $120 to $180, what would be the price elasticity of supply? A 0.16 B 4 C 6 D 60

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2019

10 Which statement explains why the pay of doctors is usually higher than the pay of hospital cleaners? A Doctors have a higher opportunity cost in qualifying. B Doctors have a more elastic supply than hospital cleaners. C Hospital cleaners belong to trade unions with stronger bargaining powers. D Hospital cleaners have a more inelastic demand than doctors.

1 marks

This question in 0455/12 Feb/March 2020

7 Lithium is an essential metal for the production of electric cars. Following a 10% increase in the price of lithium, supplies increase by 15%. This led to a 5% increase in the price of electric cars. What is the price elasticity of supply (PES) for lithium? A 0.33 B 0.66 C 1.50 D 2.0

1 marks

Answer: C

This question in 0455/11 May/June 2020

7 The price elasticity of supply of good X is 0.1. The good suddenly becomes very fashionable, leading to a large increase in demand. What would be the likely outcome of this change in the short term? A a large increase in output B a large increase in price C a small increase in price D a small increase in revenue

1 marks

Answer: B

This question in 0455/13 May/June 2020

7 The price elasticity of supply of a good is 2. The price of the good then falls by 10%. What is the effect on quantity supplied? A It falls by 0.2%. B It falls by 20%. C It increases by 0.2%. D It increases by 20%.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2020

7 The diagram shows the supply curve for a good. price ($) S 12 10 0 100 140 quantity (units) What is the price elasticity of supply when the price rises from $10 to $12? A 0.5 B 0.75 C 1.4 D 2.0

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2020

8 The table shows the supply schedule for a good. price quantity ($) (000) 1 3 2 5 3 7 What is the price elasticity of supply when price increases from $1 to $3? A 0.5 B 0.66 C 1.5 D 2.0

1 marks

Answer: B

This question in 0455/12 Feb/March 2021

8 In response to an increase in price from $5 per kilo to $6 per kilo, a farmer increased supply from 400 kilos to 500 kilos per week. What is the price elasticity of supply? A 0.8 B 0.9 C 1.2 D 1.25

1 marks

Answer: D

This question in 0455/11 May/June 2021

8 In response to an increase in price from $5 per kilo to $6 per kilo, a farmer increased supply from 400 kilos to 500 kilos per week. What is the price elasticity of supply? A 0.8 B 0.9 C 1.2 D 1.25

1 marks

Answer: D

This question in 0455/12 May/June 2021

8 In response to an increase in price from $5 per kilo to $6 per kilo, a farmer increased supply from 400 kilos to 500 kilos per week. What is the price elasticity of supply? A 0.8 B 0.9 C 1.2 D 1.25

1 marks

Answer: D

This question in 0455/13 May/June 2021

9 A firm has a high price elasticity of supply for its product. What does this indicate? A It can increase revenue by reducing the price. B It can quickly respond to changes in price. C It keeps very low volumes of product in stock. D It produces a good that has close substitutes.

1 marks

Answer: B

This question in 0455/11 May/June 2022

7 Which factor can influence the price elasticity of supply of a product? A the degree of necessity of the product B the level of spare capacity in the industry C the price of substitutes D the proportion of income spent on the product

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2022

6 What is the correct formula to calculate price elasticity of supply? A the percentage change in price divided by the change in quantity supplied B the percentage change in price divided by the percentage change in quantity supplied C the percentage change in quantity supplied divided by the change in price D the percentage change in quantity supplied divided by the percentage change in price

1 marks

Answer: D

This question in 0455/11 May/June 2023

7 In the diagram, which supply curve has the perfectly inelastic supply? A B C price $ D O quantity

1 marks

Answer: B

This question in 0455/13 May/June 2023

7 A global pandemic causes the demand for air travel to decrease. Which value for the price elasticity of supply of air travel will cause the number of tickets for air travel to fall the most? A 0 B 0.5 C 1 D 1.5

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2023

10 Newly built houses tend to be inelastic in supply. A government aim is to make the supply more elastic by relaxing building regulations. Why is the government not likely to achieve this aim immediately? A Banks will only lend to high-income earners. B Costs of building materials fluctuate according to season. C Houses take a long period of time to be built. D Population increases lead to greater housing demand.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2023

6 The markets of four products are all in equilibrium. The table gives the value of the price elasticity of supply (PES) for each product. The demand for each product shifts to the right by 5000 units at all prices. Which product will have the largest price increase? price elasticity of supply A 0 B 0.6 C 1.0 D 2.5

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2023

7 What would increase the price elasticity of supply (PES) of a product? A an increase in the cost of inputs B an increase in the firm’s profits C an increase in the number of close substitutes D an increase in the time a product can be stored

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2023

8 In response to an increase in price from $5 per kg to $6 per kg, a farmer increased supply from 400 kg to 500 kg per week. What is the price elasticity of supply? A 0.8 B 0.9 C 1.2 D 1.25

1 marks

Answer: D

This question in 0455/12 May/June 2024

8 The price elasticity of supply (PES) of a product is 1.0. The price of this product is $10 and the quantity supplied is 200 units. If the price of the product increases to $11, by how many units will the quantity supplied increase? A 1 unit B 10 units C 20 units D 200 units

1 marks

Answer: C

This question in 0455/13 May/June 2024

7 A firm has the following supply schedule. price quantity supplied ($) 5 10 10 20 What is the price elasticity of supply of the good as the price increases from $5 to $10? A −0.5 B +0.5 C +1.0 D +2.0

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2024

8 In the diagram, which line represents perfectly inelastic supply? B A C price $ D O quantity

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2024

8 The price elasticity of supply (PES) of coffee is calculated as +0.2 for the current year and +2.0 in the long run. Why is the PES of coffee higher in the long run? A Coffee plants take several years to grow. B Consumers will not buy coffee at higher prices. C There are many substitutes for coffee. D There are no stocks of coffee.

1 marks

Answer: A

This question in 0455/11 May/June 2025

8 The supply of which good is likely to be most price elastic? the good is time taken to easily stored produce the good A no one day B no one year C yes one day D yes one year

1 marks

Answer: C

This question in 0455/12 May/June 2025

8 The diagrams show the supply curves of four firms. Which firm has a price elasticity of supply of greater than zero but less than one? A B S price price S O quantity O quantity C D price S price S O quantity O quantity

1 marks

Answer: B

This question in 0455/13 May/June 2025

7 When the price of butter increased by 10%, the quantity supplied of butter increased by 20%. What is the price elasticity of supply (PES) of butter? A −2.0 B −0.5 C +0.5 D +2.0

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2025

7 The price of fish has increased from $3.00 to $4.80. The quantity supplied of fish has increased from 100 units to 130 units. What is the price elasticity of supply (PES) of fish? A 0.5 B 1.3 C 1.8 D 2

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2025