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

Price elasticity of supply — practice question

A construction firm estimates that the price elasticity of supply for building a nuclear power plant is +0.1. What could account for this?

  • AThe firm can easily find new land as required.
  • BThe firm is competing with many other construction firms.
  • CThe firm needs time to hire the highly skilled labour required.
  • DThere is a lack of close substitutes for nuclear power.

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