Table of contents

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1. Introduction to Macroeconomics2h 3m

Introduction to Economics
10m

Three Key Economic Ideas
14m

Productive and Allocative Efficiency
7m

Factors of Production
5m

Positive and Normative Statements
7m

Circular Flow Diagram
5m

Graphing Review
50m

Percentage and Decimal Review
9m

Fractions Review
12m

2. Introductory Economic Models1h 7m

Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
18m

PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
8m

PPF - Outward Shifts
8m

PPF - Comparative Advantage and Absolute Advantage
13m

PPF - Comparative Advantage and Trade
13m

PPF - Price of the Trade
3m

3. Supply and Demand3h 23m

Introduction to Supply and Demand
4m

The Basics of Demand
6m

Individual Demand and Market Demand
3m

Shifting Demand
38m

The Basics of Supply
2m

Individual Supply and Market Supply
6m

Shifting Supply
28m

Overview of Supply and Demand Shifts
8m

Supply and Demand Together: Equilibrium, Shortage, and Surplus
8m

Supply and Demand Together: One-sided Shifts
20m

Supply and Demand Together: Both Shift
34m

Supply and Demand: Quantitative Analysis
40m

4. Elasticity2h 25m

Percentage Change and Price Elasticity of Demand
18m

Elasticity and the Midpoint Method
20m

Price Elasticity of Demand on a Graph
11m

Determinants of Price Elasticity of Demand
6m

Total Revenue Test
13m

Total Revenue Along a Linear Demand Curve
14m

Income Elasticity of Demand
23m

Cross-Price Elasticity of Demand
11m

Price Elasticity of Supply
12m

Price Elasticity of Supply on a Graph
3m

Elasticity Summary
9m

5. Consumer and Producer Surplus; Price Ceilings and Price Floors3h 19m

WIllingness to Pay and Consumer Surplus
22m

Willingness to Sell and Producer Surplus
16m

Economic Surplus and Efficiency
18m

Quantitative Analysis of Consumer and Producer Surplus at Equilibrium
28m

Price Ceilings, Price Floors, and Black Markets
38m

Quantitative Analysis of Price Ceilings and Floors: Finding Points
20m

Quantitative Analysis of Price Ceilings and Floors: Finding Areas
54m

6. Introduction to Taxes1h 29m

Introducing Taxes and Tax Incidence
19m

Effects of Taxes on a Market
16m

Elasticity and Taxes
14m

Subsidies
16m

The Laffer Curve
9m

Quantitative Analysis of Taxes
13m

7. Externalities54m

Externalities: Social Benefits and Social Costs
27m

Public Solutions to Externalities
26m

8. The Types of Goods1h 8m

Four Types of Goods and Two Characteristics
22m

The Free Rider Problem and the Tragedy of the Commons
22m

Public Goods: Demand Curve and Optimal Quantity
23m

9. International Trade1h 16m

Exporting and Importing
16m

Sources of Comparative Advantage
5m

Tariffs on Imports
21m

Import Quotas and VERs
23m

Arguments Against International Trade
7m

10. Introducing Economic Concepts49m

Introducing Concepts - Business Cycle
7m

Introducing Concepts - Nominal GDP and Real GDP
12m

Introducing Concepts - Unemployment and Inflation
3m

Introducing Concepts - Economic Growth
6m

Introducing Concepts - Savings and Investment
5m

Introducing Concepts - Trade Deficit and Surplus
6m

Introducing Concepts - Monetary Policy and Fiscal Policy
7m

11. Gross Domestic Product (GDP) and Consumer Price Index (CPI)1h 37m

Calculating GDP
11m

Detailed Explanation of GDP Components
9m

Value Added Method for Measuring GDP
1m

Nominal GDP and Real GDP
22m

Shortcomings of GDP
8m

Calculating GDP Using the Income Approach
10m

Other Measures of Total Production and Total Income
5m

Consumer Price Index (CPI)
13m

Using CPI to Adjust for Inflation
7m

Problems with the Consumer Price Index (CPI)
6m

12. Unemployment and Inflation1h 15m

Labor Force and Unemployment
9m

Types of Unemployment
12m

Labor Unions and Collective Bargaining
6m

Unemployment: Minimum Wage Laws and Efficiency Wages
7m

Nominal Interest, Real Interest, and the Fisher Equation
10m

Nominal Income and Real Income
12m

Who is Affected by Inflation?
5m

Demand-Pull and Cost-Push Inflation
6m

Costs of Inflation: Shoe-leather Costs and Menu Costs
4m

13. Productivity and Economic Growth1h 17m

Productivity and the Per-Worker Production Function
19m

Institutions that Promote Economic Growth
8m

Growth Rates and the Rule of 70
10m

New Growth Theory
6m

PPF - Growth Analysis
6m

Introducing Concepts - Business Cycle
7m

Business Cycles and Their Characteristics
17m

14. The Financial System1h 37m

Financial System Definitions
10m

Savings Equal Investment
16m

Market for Loanable Funds
8m

Shifts in the Market for Loanable Funds
15m

Stocks, Bonds, and Mutual Funds
5m

Risk and Insurance
7m

Risk and Diversification
9m

Time Value of Money Calculations
17m

Calculating Bond and Stock Prices
6m

15. Income and Consumption52m

The Consumption Function
24m

The Saving Function
6m

Determinants of Consumption and Saving
6m

Average Propensity to Consume and Save
5m

Multiplier Effect of Investment Spending
9m

16. Deriving the Aggregate Expenditures Model1h 14m

Aggregate Expenditures Model and Macroeconomic Equilibrium
17m

AE Model: Graphing Macroeconomic Equilibrium
13m

AE Model: Private Closed Economy
5m

AE Model: Private Open Economy
5m

AE Model and the Multiplier
11m

AE Model: Algebraic Approach
13m

Deriving the Multiplier Algebraically
7m

17. Aggregate Demand and Aggregate Supply Analysis1h 18m

Aggregate Demand
12m

Deriving Aggregate Demand from the Aggregate Expenditure Model
12m

Shifting Aggregate Demand
9m

Long Run Aggregate Supply
9m

Short Run Aggregate Supply
7m

Shifting Short Run Aggregate Supply
8m

AD-AS Model: Equilibrium in the Short Run and Long Run
5m

AD-AS Model: Shifts in Aggregate Demand
14m

18. The Monetary System1h 1m

The Functions of Money; The Kinds of Money
8m

Defining the Money Supply: M1 and M2
4m

Required Reserves and the Deposit Multiplier
8m

Introduction to the Federal Reserve
8m

The Federal Reserve and the Money Supply
11m

History of the US Banking System
9m

The Financial Crisis of 2007-2009 (The Great Recession)
10m

19. Monetary Policy1h 32m

Goals of Monetary Policy
3m

The Demand for Money
13m

The Money Supply on the Graph
11m

Monetary Policy and Aggregate Demand
17m

Expansionary and Contractionary Monetary Policy
15m

Taylor Rule
11m

Quantity Theory of Money
9m

Federal Reserve Policies during the 2007-2009 Recession
8m

20. Fiscal Policy52m

Introduction to Fiscal Policy
9m

Expansionary and Contractionary Fiscal Policy
9m

Government Purchases and the Multiplier Effect
8m

Taxes, the Multiplier Effect, and Automatic Stabilizers
9m

Long Run Effects of Fiscal Policy
6m

Criticisms of Fiscal Policy
10m

21. Revisiting Inflation, Unemployment, and Policy46m

Short Run Phillips Curve
9m

Long Run Phillips Curve
6m

Phillips Curve and Expected Inflation
6m

Phillips Curve and Supply Shocks
5m

Sacrifice Ratio
8m

Disinflation and Deflation
9m

22. Balance of Payments30m

Balance of Payments: Introduction
5m

Balance of Payments: Current Account
8m

Balance of Payments: Financial Account and Capital Account
7m

Net Exports Equal Net Foreign Investment
7m

Balance of Trade; Trade Deficit and Trade Surplus
2m

23. Exchange Rates1h 16m

Exchange Rates: Introduction
14m

Exchange Rates: Nominal and Real
13m

Exchange Rates: Equilibrium
6m

Exchange Rates: Shifts in Supply and Demand
11m

Exchange Rates and Net Exports
6m

Exchange Rates: Fixed, Flexible, and Managed Float
5m

Exchange Rates: Purchasing Power Parity
7m

The Gold Standard
4m

The Bretton Woods System
6m

24. Macroeconomic Schools of Thought40m

Classical Model and Keynesian Model
9m

Monetarist Model
4m

Quantity Theory of Money
9m

New Classical Model
4m

Real Business Cycle Model
3m

Austrian Model
3m

Communism and Karl Marx
5m

25. Dynamic AD/AS Model35m

Dynamic AD-AS Model: Introduction
7m

Dynamic AD-AS Model: Inflation and Recession
10m

Dynamic AD-AS Model: Fiscal Policy
9m

Dynamic AD-AS Model: Monetary Policy
7m

26. Special Topics11m

Industrially Advanced Countries (IACs) and Developing Countries (DVCs)
1m

Developing Countries: Obstacles to Development
4m

Vicious Circle of Poverty
5m

4. Elasticity

Price Elasticity of Supply

Macroeconomics

4. Elasticity

Price Elasticity of Supply

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Multiple Choice

The price elasticity of supply measures the responsiveness of:

Quantity supplied to changes in price

Quantity demanded to changes in supply

Quantity supplied to changes in income

Quantity supplied to changes in demand

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Verified step by step guidance

Understand the concept of price elasticity of supply, which measures how much the quantity supplied of a good responds to a change in the price of that good.

Recall that elasticity is a ratio of the percentage change in quantity supplied to the percentage change in price.

Identify the correct relationship: Price elasticity of supply specifically relates to changes in quantity supplied as a result of changes in price, not income or demand.

Eliminate incorrect options by recognizing that elasticity of supply does not measure changes in quantity demanded or changes due to income or demand shifts.

Conclude that the correct answer is the responsiveness of quantity supplied to changes in price, as this aligns with the definition of price elasticity of supply.