A producer of jars of cooking sauce has the following information. No additional jars are currently in production.
| Finished jars in the warehouse | Current quantity supplied each week | Time needed to produce and package a new batch |
|---|---|---|
| 24,000 jars | 6,000 jars | 5 weeks |
The market price of the cooking sauce rises unexpectedly.
Calculate how many weeks the warehouse stock would last at the current weekly quantity supplied. Use your answer to explain why supply is likely to be relatively price elastic immediately after the price rise and why it is likely to become more price inelastic after the warehouse stock has been sold.
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.