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

Price elasticity of supply (PES) — practice question

A firm has a high price elasticity of supply for its product. What does this mean?

  • AIt can increase revenue by reducing the price.
  • BIt can quickly respond to changes in price.
  • CIt keeps very low volumes of product in stock.
  • DIt produces a good that has close substitutes.

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