Economics 9708 · AS & A Level · Price elasticity of supply
Explain two factors that determine the price elasticity of supply of a manufactured product.
Taxes are frequently imposed on manufactured products, including necessities that have few substitutes. Discuss whether the incidence of a tax on a manufactured product always falls mainly on the producer.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding are shown by the correct definition/formula of price elasticity of supply (percentage change in quantity supplied divided by percentage change in price).” …