An insulation-panel manufacturer responds to a change in the market price of its panels. All other influences on supply remain unchanged.
| Original | After the price change | |
|---|---|---|
| Price per panel | £80 | £88 |
| Quantity supplied each week | 1,500 | 1,680 |
Using the manufacturer's figures, calculate the price elasticity of supply of insulation panels. Show your working, and identify whether the manufacturer's supply is price elastic or price inelastic.
236 exam-style questions on AQA GCSE Economics 1.3 How prices are determined, covering 1.3.1a Demand and the factors that influence it, 1.3.1b The demand curve, 1.3.2a Supply and the factors that influence it, 1.3.2b The supply curve, 1.3.3a Determining equilibrium price, 1.3.3b Applying diagrams and showing revenue, 1.3.4a Complements and substitutes, 1.3.4b Effects of changes on related markets, 1.3.5a Price elasticity of demand, 1.3.5b Factors affecting price elasticity of demand, 1.3.5c Measuring PED and its implications, 1.3.6a Price elasticity of supply, 1.3.6b Factors affecting price elasticity of supply, and 1.3.6c Measuring PES and its implications. Each one has a worked solution and a mark scheme showing where the marks go.