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

Price elasticity of supply — practice question

(a)[8]

Explain any two factors that make the supply of a product price-inelastic.

(b)[12]

Discuss the policies that a government might use to raise the price elasticity of supply of agricultural goods in an economy and judge which policy is likely to be the most effective.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Knowledge and understanding of price elasticity of supply and what 'inelastic' means in this context

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