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

Price elasticity of supply — practice question

A firm finds that the price elasticity of supply for its product is 0.3. What is likely to be true about the firm?

  • AIt has unused productive capacity.
  • BIt has unsold stock of its product.
  • CIt uses a high proportion of perishable raw materials.
  • DIt uses factors of production that are easily substituted.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI