Economics 9708 · AS & A Level · Price elasticity of supply

Price elasticity of supply — practice question

A firm calculates that the price elasticity of supply for its product is +1.5. What does this show?

  • AThe firm has available stock.
  • BThe firm has no excess capacity.
  • CThe firm operates in a competitive market.
  • DThe firm raises its price by 10% and its total revenue increases by 15%.

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