Economics 9708 · AS & A Level · Price elasticity of supply
Explain the determinants of supply for an agricultural product, such as rice, and judge which of these determinants is likely to be the most significant at the present time.
Assess whether the supply of agricultural products is likely to be more price elastic or less price elastic than the supply of manufactured products.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding (max 3 marks): Knowledge and understanding of the determinants of supply for an agricultural product, such as rice (at least two determinants should be included): physical factors, e.g. climate and soil; institutional factors, e.g. land tenure and land reforms; infrastructural factors, e.g. irrigation and storage facilities; the price of rice and the prices of other agricultural products.” …