Economics Multiple Choice Question – 3 April 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Economics

It has been estimated that the price elasticity of supply (PES) of flood defences is 0.25 in the short run and 1.25 in the long run. Which of the following combinations of statements is correct?

Select ONE answer:

  1. Short run PES of flood defences – Elastic / Long run PES of flood defences – Elastic
  2. Short run PES of flood defences – Elastic / Long run PES of flood defences – Inelastic
  3. Short run PES of flood defences – Inelastic / Long run PES of flood defences – Elastic
  4. Short run PES of flood defences – Inelastic / Long run PES of flood defences – Inelastic

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

  1. In the short run price elasticity of supply is inelastic.
  2. Over time price elasticity of supply becomes more elastic.
  3. Correct: In the short run price elasticity of supply is inelastic and in the long run it becomes elastic.
  4. In the long run price elasticity of supply is elastic.

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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