Supply

Question 1

What is the definition of supply

Answer 1

Supply is the amount of a good/service that a producer is willing and able to supply at a given price in a given time period

Question 2

What are the factors that cause supply to shift

Answer 2

Indirect taxes; Subsidies; Number of suppliers; Changes in technology; Cost of production

Question 3

What does PES measure

Answer 3

How a change in price impacts supply

Question 4

What is the PES formula

Answer 4

PES = % change in supply / % change in price

Question 5

What PES = perfectly inelastic`

Answer 5

0

Question 6

What PES = inelastic

Answer 6

0-1

Question 7

What PES = elastic

Answer 7

1+

Question 8

What factors influence PES

Answer 8

Availability of factors of production; Availability of raw materials; State of the economy; Stockpiles and perishability; Time; Spare capacity