Industry X has a price elasticity of supply of 1.5, while Industry Y has a price elasticity of supply of 0.2. If both prices rise by 10%, which outcome is most likely?
Output rises by 1.5% in X and 0.2% in Y
Output rises by 15% in both industries
Output rises by 2% in X and 15% in Y
Output rises by 15% in X and 2% in Y, so availability responds more strongly in X
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.