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

Price elasticity of supply — practice question

In which situation would the supply curve of a car manufacturing firm be most likely to be price elastic?

  • Awhen the firm finds it difficult to recruit new labour
  • Bwhen the firm has a large quantity of stock
  • Cwhen the firm is operating in the short run
  • Dwhen the firm is operating near to full capacity

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