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

Price elasticity of supply (PES) — practice question

The price elasticity of supply for a good is $2$. The good’s price then decreases by $10\%$. What change occurs in quantity supplied?

  • AIt falls by $0.2\%$.
  • BIt falls by $20\%$.
  • CIt increases by $0.2\%$.
  • DIt increases by $20\%$.

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