A fruit juice producer supplies 12,000 bottles per week when the price is £2.50 per bottle. The producer estimates that its price elasticity of supply is 1.5. It is considering increasing the price to £2.75 per bottle.
Using percentage changes from the original values, what quantity is the producer likely to supply each week at the new price?
13,800 bottles per week
12,180 bottles per week
12,800 bottles per week
13,200 bottles per week
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.