Unit 2: Microeconomics

Topic 2.6: Price Elasticity of Supply Questions

Practice 20 exam-style questions for IB Economics Topic 2.6. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

1State4 marks
2026
State two determinants of price elasticity of supply (PES).
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2State3 marks
2026
State what a PES value greater than 1 indicates.
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3Define4 marks
Define price elasticity of supply and explain the difference between elastic and inelastic supply.
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4State3 marks
2026
State what a PES value between 0 and 1 indicates.
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51 mark
Price elasticity of supply (PES) measures:
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6State3 marks
2026
State what a PES value between 0 and 1 indicates.
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7State4 marks
2026
State two determinants of price elasticity of supply (PES).
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8Define4 marks
Define price elasticity of supply and explain the difference between elastic and inelastic supply.
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91 mark
Price elasticity of supply (PES) measures:
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10State3 marks
2026
State what a PES value greater than 1 indicates.
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11Explain5 marks
2026
Explain why spare production capacity tends to make supply more price elastic.
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121 mark
Which product is most likely to have highly inelastic supply?
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131 mark
If the price of a good rises by 5% and the quantity supplied increases by 15%, the PES is:
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141 mark
Supply is perfectly inelastic when:
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151 mark
Which product is most likely to have highly inelastic supply?
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161 mark
The ability to store a product tends to make its supply more elastic because:
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171 mark
The ability to store a product tends to make its supply more elastic because:
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181 mark
Supply tends to be more elastic in the long run than the short run because:
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191 mark
Which of the following factors is most likely to increase the price elasticity of supply?
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20Explain4 marks
2026
Explain how the shape of the supply curve reflects price elasticity of supply.
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