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

Price elasticity of supply — practice question

Which event is most likely to allow firms to meet a rise in demand by expanding supply instead of increasing price?

  • AFirms reduce their expenditure on the training of workers.
  • BImport duties are increased on machines that increase the speed of production.
  • CThe government introduces buffer stock schemes for the goods produced by the firm.
  • DTrade unions become strong, leading to poor labour productivity.

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