Over one quarter, producers of two products respond to price changes as shown.
| Product | Increase in price | Increase in quantity supplied |
|---|---|---|
| Reusable water bottles | 8% | 12% |
| Handwoven rugs | 20% | 20% |
Which statement is correct?
Bottle supply is more price elastic, as its quantity supplied rises proportionally more than its price
Rug supply is more price elastic, as its quantity supplied rises by the larger percentage
Both supplies are equally price elastic, as quantity supplied rises whenever price rises
Both supplies are price elastic, as quantity supplied rises by at least as much as price
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.