A temporary fault in a town's water network causes demand for bottled water to rise sharply. Local bottling plants hold stocks of bottled water in warehouses and have unused machinery that can be brought into production.
Evaluate how important price elasticity of supply is in determining the effects on bottling businesses and households.
81 exam-style questions on OCR GCSE Economics 2.3 Supply, covering 2.3.1 What is supply, 2.3.2 Draw a supply curve using data, 2.3.3 Explain a supply curve, 2.3.4 Shifts and movements of the supply curve, 2.3.5 Causes and consequences of supply changes, 2.3.6 Price elasticity of supply, 2.3.7 Draw supply curves of different elasticity, and 2.3.8 Importance of price elasticity of supply. Each one has a worked solution and a mark scheme showing where the marks go.