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6. What does it mean if PES= more than 1?

  • unit elastic
  • elastic
  • inelastic

7. What does it mean if PES= less than 1?

  • inelastic
  • elastic
  • unit elastic

8. What does it mean if PES=1?

  • unit elastic
  • perfectly inelastic

9. What does it mean if PES=0?

  • perfectly inelastic
  • unit elastic

10. What does a bigger level of spare capicity mean for PES?

  • it is more elastic
  • it is less elastic

11. What does it mean if a firm has a small stock pile for PES?

  • perfectly inelastic
  • it is less elastic

12. What does it mean if the firm has non perishable goods for PES?

  • elastic
  • inelastic

13. What does it mean for PES if there are lots of entry barriers ?

  • inelastic
  • elastic

14. Is it true that in the short run PES will be inelastic BUT in the long run PES will be elastic?

  • True
  • False