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

Price elasticity of supply — practice question

There are four firms that make furniture. The table gives the price elasticity of supply (PES) for each firm. If the price of furniture increases by $5\%$ , which firm would see quantity supplied rise by $2.5\%$?

  • Afirm A (PES = $2.5$)
  • Bfirm B(PES = $2.0$)
  • Cfirm C (PES = $0.6$)
  • Dfirm D (PES = $0.5$)

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