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AP Microeconomics Practice Quiz: Price Elasticity of Supply

Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026

Test your understanding with short quizzes. This quiz has 10 questions to check your progress.

Question 1 of 10

Price elasticity of supply is best defined as a measure of the:

All Questions (10)

Price elasticity of supply is best defined as a measure of the:

A) responsiveness of the quantity supplied to changes in price.

B) change in total revenue when the quantity supplied changes.

C) impact of input prices on the quantity supplied.

D) percentage change in price divided by the percentage change in quantity supplied.

Correct Answer: A

The provided content explicitly states that price elasticity of supply measures 'the responsiveness of the quantity supplied to changes in price.'

Which of the following correctly describes the calculation for the price elasticity of supply?

A) The change in quantity supplied divided by the change in price.

B) The percentage change in price divided by the percentage change in quantity supplied.

C) The percentage change in quantity supplied divided by the percentage change in price.

D) The impact of a price change on total expenditure.

Correct Answer: C

The content specifies the formula: 'Price elasticity of supply is measured by the percentage change in quantity supplied divided by the percentage change in price...'

If a 20% increase in the price of a good leads to a 10% increase in the quantity supplied, the price elasticity of supply is:

A) 0.5 and inelastic.

B) 2.0 and elastic.

C) 1.0 and unit elastic.

D) 0.5 and elastic.

Correct Answer: A

Using the formula from the text, elasticity is the percentage change in quantity supplied (10%) divided by the percentage change in price (20%), which equals 0.5. Since this value is less than the benchmark of 1, the supply is described as inelastic.

When the calculated price elasticity of supply for a good is 1.8, the supply is considered to be:

A) inelastic.

B) unit elastic.

C) elastic.

D) perfectly inelastic.

Correct Answer: C

The content states that ranges of values for elasticity of supply are described as elastic when the magnitude is greater than 1. Since 1.8 is greater than 1, the supply is elastic.

According to the provided text, what is the benchmark magnitude that separates an elastic supply from an inelastic supply?

A) 0

B) 1

C) 10

D) 100

Correct Answer: B

The content clearly states, '...the separating benchmark being a magnitude of 1...' for distinguishing between elastic and inelastic supply.

Based on the provided content, which of the following is mentioned as a factor that influences the price elasticity of supply?

A) The level of total expenditure by consumers.

B) The price of alternative inputs.

C) The availability of substitute goods for consumers.

D) The change in total revenue for producers.

Correct Answer: B

The text explicitly states: 'The price elasticity of supply depends on certain factors such as the price of alternative inputs.'

If the percentage change in quantity supplied is exactly equal to the percentage change in price, the supply is described as:

A) elastic.

B) inelastic.

C) unit elastic.

D) perfectly elastic.

Correct Answer: C

When the percentage change in quantity supplied equals the percentage change in price, the ratio is 1. The content identifies a magnitude of 1 as 'unit elastic.'

A supply curve is described as inelastic. This means that for a given percentage increase in price, the percentage increase in quantity supplied will be:

A) smaller.

B) larger.

C) the same.

D) zero.

Correct Answer: A

Inelastic supply is defined as having an elasticity value of less than 1. This occurs when the percentage change in quantity supplied is less than the percentage change in price.

Consider the following data for a product: When the price is $5, quantity supplied is 200 units. When the price rises to $6, quantity supplied is 220 units. The price elasticity of supply is:

A) 2.0, which is elastic.

B) 1.0, which is unit elastic.

C) 0.5, which is inelastic.

D) 0.2, which is inelastic.

Correct Answer: C

The percentage change in price is (($6-$5)/$5) * 100% = 20%. The percentage change in quantity supplied is ((220-200)/200) * 100% = 10%. Elasticity is 10% / 20% = 0.5. Since 0.5 is less than 1, the supply is inelastic.

A graph of a supply curve shows that a large change in price leads to only a small change in the quantity supplied. This indicates that the price elasticity of supply is:

A) elastic.

B) unit elastic.

C) negative.

D) inelastic.

Correct Answer: D

The content mentions using graphs to explain elasticity. If the percentage change in quantity supplied is small relative to the percentage change in price, the elasticity calculation (%ΔQs / %ΔP) will result in a value less than 1, which is defined as inelastic.