Question 13
Price rises from £20 at A to £24 at B and weekly quantity supplied rises from 50 to 65. Using percentage changes from the original values, which statement is correct?
Price elasticity of supply is 0.67, so supply is price inelastic.
Price elasticity of supply is 1.5, so supply is price elastic.
Price elasticity of supply is 1.5, so quantity supplied has risen proportionately less than price.
Price elasticity of supply is 3.0, so supply is perfectly price elastic.
2.3 Supply Questions
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.