1. What is price elasticity of supply and what does it measure?

2. How does the law of supply differ from price elasticity of supply?

3. What is the difference between price elastic and price inelastic supply, and what are examples of each?

1. What is the formula for calculating price elasticity of supply?

2. How do you interpret an elasticity value greater than 1 versus less than 1?

3. Why is the elasticity of supply typically a positive number?

1. Why is understanding price elasticity of supply important for business owners and managers?

2. How can a business use price elasticity calculations to make decisions about production?

1. What are the five categories of price elasticity of supply and how is each defined?

2. What is an example of a perfectly inelastic good and why does its supply not change with price?

3. How would you distinguish between elastic, inelastic, and unit elastic supply on a graph?

1. What is marginal cost and how does it relate to price elasticity of supply?

2. How did marginal cost considerations affect ventilator production during the COVID-19 pandemic?

1. Why is time one of the most important factors affecting price elasticity of supply?

2. What is momentary supply and why are agricultural products often perfectly inelastic in the short term?

1. How does short-run supply typically differ from long-run supply in terms of elasticity?

2. What methods can companies use to increase supply in the short run versus the long run?

1. How does the availability of alternative inputs affect the elasticity of supply?

2. Why are manufactured goods like refrigerators more elastic than perishable goods like fresh vegetables?

3. What is factor mobility and how does it influence price elasticity of supply?

4. How do firm size and nature constraints affect a company's ability to respond to price changes?