A firm makes wooden garden sheds. It can increase weekly production using its current equipment, and installing an additional production line would take several months.
| Price per shed | Quantity supplied per week |
|---|---|
| £400 | 600 |
| £440 | 630 |
Calculate the price elasticity of supply when the price rises from £400 to £440.
Explain whether the firm's supply is likely to become more or less price elastic over the next year.
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.