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

Price elasticity of supply — practice question

Product X has a price elasticity of supply (PES) of +2, whereas product Y has a PES of +0.2. Which statement about products X and Y is correct?

  • AX has more substitutes than Y.
  • BA 20% price fall would lead to a greater decrease in production of Y than of X.
  • CAfter a price rise, it is more difficult to increase Y’s output than X’s.
  • DAfter a price fall of 10%, more people would buy X than would buy Y.

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