A specialist engineering firm manufactures bespoke carbon-fibre components for the aerospace industry. Which of the following changes is most likely to increase the price elasticity of supply (PESPESPES) for these components?
A rise in the number of rival firms offering alternative lightweight alloys, providing clients with close substitutes.
A reduction in the time and training required for assembly-line workers to switch from manufacturing standard automotive parts to aerospace components.
A decrease in the price of raw carbon-fibre sheets, which reduces the firm's marginal cost of production.
A decrease in the proportion of the purchasing firms' total procurement budget spent on these components.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.