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

Price elasticity of supply — practice question

A refinery that converts oil into petrol (gas) is operating under these conditions. 1 It is operating at maximum capacity. 2 Its petrol storage tanks are already full. 3 It has been delivered a new fleet of petrol tankers to move its petrol. 4 It takes six months to train new workers so that they are qualified in safety procedures. Which of these conditions would be likely to make the supply of petrol relatively price inelastic?

  • A1 and 2
  • B1 and 4
  • C2 and 3
  • D3 and 4

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