Price elasticity of supply (PES) — Paper 1 · IGCSE Economics (9-1) 0987

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 0987/11 May/June 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 0987/12 Oct/Nov 2020

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 0987/11 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 0987/12 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 0987/11 May/June 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 0987/11 May/June 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 0987/12 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 0987/12 May/June 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 0987/11 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 0987/12 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 0987/12 Oct/Nov 2025