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

Price elasticity of supply — practice question

Demand for a good rises. In which situation will the quantity supplied of the good increase the most?

  • AIt is an agricultural good that has an annual growing cycle and requires a cool climate.
  • BIt is an agricultural good that is perishable and very expensive to store.
  • CIt is a manufactured good that uses unskilled labour and there is unemployment in the economy.
  • DIt is a manufactured good that uses capital-intensive production and it is currently at full capacity.

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