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

Price elasticity of supply (PES) — practice question

The price elasticity of supply (PES) of coffee is measured as $+0.2$ in the current year and $+2.0$ over the long run. Why is the PES of coffee greater in the long run?

  • ACoffee plants take several years to grow.
  • BConsumers will not buy coffee at higher prices.
  • CThere are many substitutes for coffee.
  • DThere are no stocks of coffee.

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