A product's price rises from £40 to £44 and quantity supplied rises from 500 to 525 units. Using percentage changes from the original values, which statement is correct?
Price elasticity of supply is 2.0, so supply is elastic
Price elasticity of supply is 1.0, so supply is unitary elastic
Price elasticity of supply is 0.5, so producers have responded proportionately less than the price change
Price elasticity of supply is 0.2, so quantity supplied rises by 2%
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.