CAIE IGCSE Economics 2.7.1 Definition of Pes Questions
Practise Cambridge IGCSE Economics by defining inelastic supply and interpreting its response to price changes.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- Define price elasticity of supply as responsiveness of quantity supplied to price change.
- Identify inelastic supply as a less-than-proportionate response of quantity supplied.
- Apply the definition of inelastic supply to a producer’s output decision.
CAIE IGCSE Economics 2.7.1 Definition of Pes Questions question 1
[Maximum number: 2]
Advances in technology have changed how trees (wood) are cut down, transported and used in the manufacture of furniture, such as tables. Wood is in inelastic supply. Wood can be supplied in all economic systems. However, public goods are not supplied in a market economic system.
Define inelastic supply.
Define inelastic supply.
Quantity supplied / supply changes by a smaller percentage change than price (2).
Supply changing by less than price / PES less than 1 / PES <1 / supply unresponsive to change in price (1).
2
Allow one mark for PES =0.
All question bank results loaded