At the start of a school term, colder-than-usual weather causes a sharp increase in demand for school jumpers. Manufacturers have finished jumpers in storage and unused knitting machinery.
During the first month, the market price of school jumpers rises by 8% and the quantity supplied rises by 16%.
Calculate the price elasticity of supply of school jumpers during the first month. Show your working.
Explain how the price elasticity of supply of school jumpers is likely to affect jumper manufacturers and families.
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.