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

Price elasticity of supply — practice question

In a market economy, if demand for a product rises and the price goes up while output stays the same, what might account for this?

  • Aa lack of financial incentives for entrepreneurs
  • Ba perfectly inelastic supply of factors of production
  • Cconsumer influence exceeding producer influence
  • Dsocial benefits equalling private benefits

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