Which one of the following is a reason why the supply of clothing is likely to be price elastic in the short run when the market price of clothing increases?
Clothing manufacturers' inventories of finished products are very low
The consumer demand for clothing is highly price elastic
The marginal cost of textile production rises steeply as output expands
There is significant spare capacity in clothing factories
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.