Supply quick quiz 4.5 / 5 based on 8 ratings ? EconomicsProduction and efficiencyASEdexcel Created by: LottieCreated on: 19-12-11 17:23 What is supply? amount of goods/ services that firms are willing to sell at a given price over a given time 1 of 14 Why would there be an extention(upwards) in the supply curve? increase in price 2 of 14 Why would there be an contraction(downwards) in the supply curve? a decrease in price 3 of 14 Why are firms more willing to supply when goods are at higher prices? there will be more profit and this will enable marginal firms to enter a market 4 of 14 What does PES measure? responsiveness of supply to a change in good 5 of 14 What does it mean if PES= more than 1? elastic 6 of 14 What does it mean if PES= less than 1? inelastic 7 of 14 What does it mean if PES=1? unit elastic 8 of 14 What does it mean if PES=0? perfectly inelastic 9 of 14 What does a bigger level of spare capicity mean for PES? it is more elastic 10 of 14 What does it mean if a firm has a small stock pile for PES? perfectly inelastic 11 of 14 What does it mean if the firm has non perishable goods for PES? elastic 12 of 14 What does it mean for PES if there are lots of entry barriers ? inelastic 13 of 14 Is it true that in the short run PES will be inelastic BUT in the long run PES will be elastic? True 14 of 14
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