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

Price elasticity of supply — practice question

A firm’s product price increases by 12%. One week later, the firm is still able to make only the same quantity, but after one month it can raise output by 6%. How would the price elasticity of supply be described after one week and after one month?

  • Aafter one week: infinite; after one month: elastic
  • Bafter one week: infinite; after one month: inelastic
  • Cafter one week: zero; after one month: elastic
  • Dafter one week: zero; after one month: inelastic

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