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
2026vault
State two determinants of price elasticity of supply (PES).
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21 mark
Price elasticity of supply (PES) measures:
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34 marks
Define price elasticity of supply and explain the difference between elastic and inelastic supply.
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4state4 marks
2026vault
State two determinants of price elasticity of supply (PES).
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5state3 marks
2026vault
State what a PES value between 0 and 1 indicates.
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61 mark
Price elasticity of supply (PES) measures:
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7state3 marks
2026vault
State what a PES value greater than 1 indicates.
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8state3 marks
2026vault
State what a PES value between 0 and 1 indicates.
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94 marks
Define price elasticity of supply and explain the difference between elastic and inelastic supply.
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10state3 marks
2026vault
State what a PES value greater than 1 indicates.
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11explain4 marks
2026vault
Explain how the shape of the supply curve reflects price elasticity of supply.
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12explain5 marks
2026vault
Explain why supply is usually more elastic in the long run than in the short run.
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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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15explain5 marks
2026vault
Explain why supply is usually more elastic in the long run than in the short run.
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16explain6 marks
2026vault
Explain why firms need to consider PES when predicting the effect of price changes.
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17explain6 marks
2026vault
Explain why new housing supply is often very price inelastic in the short run.
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181 mark
Which product is most likely to have highly inelastic supply?
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19explain6 marks
2026vault
Explain why firms need to consider PES when predicting the effect of price changes.
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201 mark
The ability to store a product tends to make its supply more elastic because:
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