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1.2 How markets work

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Question 8

Helium is a critical gas used in medical MRI scanners and semiconductor manufacturing. Because it is almost exclusively captured as a byproduct during natural gas extraction, helium supply cannot be easily increased independently. In recent years, despite a threefold increase in global helium prices, supply remained highly restricted due to maintenance shutdowns at major natural gas processing facilities.

Using this context, explain one likely factor that may influence the price elasticity of supply (PES) of helium.

[3]

1.2 How markets work Questions

  1. A Level
  2. /Economics
  3. /1.2 How markets work