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1.3 Price determination in a competitive market

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Question 52

A rise in the price of hothouse tomatoes from £5 to £6 per kg encourages growers to increase their supply from 40 kg to 60 kg each week. Other things remaining the same, this suggests that the price elasticity of supply for hothouse tomatoes is

0.40

0.80

1.25

2.50

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market