A harbour sells annual mooring permits. Each permit gives the holder the use of one berth for a year. The table shows the number of permits the harbour planned to offer for the same year at two different prices.
| Price per annual permit | Permits offered |
|---|---|
| £1,200 | 75 |
| £1,500 | 75 |
Explain what the data show about the price elasticity of supply of mooring permits and why supply might respond to price in this way.
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.