Economics 2281 · O Level · Price elasticity of supply (PES)
Price elasticity of supply (PES) — practice question
In many countries, the cost of dental treatment is rising. For instance, the average charge for filling a tooth is $\$180$ in the US. The number of dentists in the US is also rising. In the US, the tertiary sector employs the biggest share of the labour force. Changes in price affect the supply of products in the tertiary sector, and they also affect the primary and secondary sectors.
(a)[2]
Identify two reasons why a person might decide to train to become a dentist.
(b)[4]
Explain two reasons why manufactured goods are normally more price-elastic in supply than agricultural goods.
(c)[6]
Analyse the advantages of a rise in a country’s labour force.
(d)[8]
Discuss whether a government should, or should not, provide free dental treatment.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.