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

Price elasticity of supply — practice question

(a)[8]

Use examples to show why the supply of some products is price elastic, whereas the supply of other products is price inelastic.

(b)[12]

Discuss how fiscal policy can be used to raise the aggregate supply of products in an economy and assess whether this method is likely to be effective.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Knowledge: define price elasticity of supply (what it measures)

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