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

Price elasticity of supply — practice question

A refinery that converts oil into petrol (gas) is dealing with the conditions below. 1 It is operating at full capacity. 2 Its petrol storage tanks are already full. 3 It has taken delivery of 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 make the supply of petrol relatively price inelastic?

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

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