Two industries receive the same 10% price rise. Industry X increases output by 2%, while Industry Y increases output by 18%. Which statement is correct?
Supply is more elastic in X because its output changes less
Both industries have unitary price elasticity of supply
The time needed to alter production cannot affect either result
Supply is more elastic in Y, so its consumers may experience a larger increase in availability
36 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.