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

Price elasticity of supply — practice question

In what circumstances is an increase in a product’s price likely to lead to more resources being devoted to producing it?

  • Aif demand increases when the supply curve is perfectly inelastic
  • Bif the demand curve shifts to the right when the supply curve is inelastic
  • Cif supply increases when the demand curve is perfectly inelastic
  • Dif the supply curve shifts to the left when the demand curve is elastic

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