Economics 0455 · IGCSE · Price elasticity of supply (PES)

Price elasticity of supply (PES) — practice question

The table illustrates how a rise in market price from $\$5$ to $\$6$ affects the supply of mobile (cell) phones. Which of the following statements about the price elasticity of supply of mobile phones is correct?

  • APrice elasticity of supply is $0.4$.
  • BPrice elasticity of supply is $2.5$.
  • CSupply is perfectly elastic.
  • DThere is unit elasticity.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI