Economics 9708 · AS & A Level · Price elasticity of supply
Explain what these estimates imply for producers of smartphones that use semi-conductors, and take into account the significance of the long-run estimate.
Assess the likely effects on resource allocation of a sustained rise in demand for semi-conductors.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding: Meaning of price elasticity of supply (1); a correct formula (1); an explanation of what is meant by price inelastic supply (a rise in price causes a proportionately smaller rise in quantity supplied) (1).” …