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

Price elasticity of supply — practice question

The government sets a minimum price for a product that is higher than the present equilibrium price. Which value of the product’s price elasticity of supply would lead to the smallest excess supply in its market?

  • Abetween zero and one
  • Bgreater than one
  • Cone
  • Dzero

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