Price Elasticity of Supply (PES) (DP IB Economics: HL)

Text B, Paragraph 2

In Colombia, the price of bananas increased from $0.30 to $0.45 per unit, causing the quantity supplied to rise from 500 to 600 units.

Calculate the price elasticity of supply (PES) for bananas using the data provided in (Text B, Paragraph 2).

Text E, Paragraph 2

A mining company in South Africa cannot easily increase production when metal prices rise due to the high cost and complexity of expanding operations, demonstrating price inelastic supply.

State two reasons why the mining industry might have price inelastic supply as indicated in bold (Text E, Paragraph 2).

Text A, Paragraph 2

In the wind turbine manufacturing industry in China, the supply of turbines is highly elastic due to the mobility of factors of production.

Outline how the mobility of factors of production can lead to elastic supply, as indicated in bold (Text A, Paragraph 2).

Text B, Paragraph 1

A furniture manufacturer in Sweden has been able to adjust production quickly in response to rising prices, illustrating elastic supply.

Draw a diagram showing elastic supply, as indicated in bold (Text B, Paragraph 1).

Text D, Paragraph 4

In the gold mining industry in Australia, the long time required to expand operations means that supply is inelastic even when gold prices rise sharply.

Outline how time period influences the price elasticity of supply, as demonstrated in the gold mining industry (Text D, Paragraph 4).

Text B, Paragraph 2

In the wind turbine manufacturing industry in China, the supply of turbines is highly elastic due to the mobility of factors of production.

Question: State how the mobility of factors of production can lead to elastic supply, (Text B, Paragraph 2.)