A precision-engineering manufacturer invests in multi-purpose CNC machinery and retrains its workforce to rapidly switch production lines between customized aerospace valves and medical-grade actuators in response to market price fluctuations.
Other things remaining the same, this flexibility is most likely to result in
a lower price elasticity of supply (PES\text{PES}PES) for these components.
a higher price elasticity of demand (PED\text{PED}PED) for these components.
a higher price elasticity of supply (PES\text{PES}PES) for these components.
a reduction in barriers to entry in the precision-engineering industry.
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.