Due to a sudden increase in urban logistics demand, the market price of electric cargo bikes rises by 8%, prompting regional manufacturers to increase their quantity supplied by 12%. Ceteris paribus, this indicates that the price elasticity of supply (PES) for electric cargo bikes is:
relatively price inelastic, with a PES of 0.67
relatively price elastic, with a PES of 1.50
relatively price elastic, with a PES of 0.67
relatively price inelastic, with a PES of 1.50
22 exam-style questions on Edexcel A A Level Economics 1.2.5 Elasticity of supply. Each one has a worked solution and a mark scheme showing where the marks go.