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

Price elasticity of supply — practice question

(a)[8]

Explain price elasticity of supply and suggest why these estimates are different.

(b)[12]

Discuss whether, for a manufacturer of smartphones, knowledge of the product’s price elasticity of demand or its cross elasticity of demand in relation to other products would be more useful.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge/definition of price elasticity of supply: what it indicates” …

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