A bicycle repair business increases its regular weekly bookings from 40% to 95% of the work its existing mechanics and repair bays can handle.
How is this likely to change the price elasticity of supply of the business's repair service?
It rises, because the firm is completing more repairs each week
It cannot be judged, because no percentage change in repair prices is given
It is unchanged, because the number of mechanics and repair bays is unchanged
It falls, because less of the firm's existing capacity is now available
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.