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2.3.4 factors affecting price elasticity of supply

Card 1 of 20

What does spare capacity mean in relation to PES?

A

Spare capacity is the level of output produced when firms reduce their use of labour and capital.

B

Spare capacity is the maximum output possible when all resources are fully employed.

C

Spare capacity is the additional investment needed to replace worn-out machines and equipment.

D

Spare capacity is unused machines, labour and other resources available without new investment.

Card 1 of 20

2.3.4 factors affecting price elasticity of supply Flashcards

  1. Intl A Level
  2. /Economics
  3. /2.3.4 factors affecting price elasticity of supply

20 flashcards on CIE Intl A Level Economics 2.3.4 factors affecting price elasticity of supply: the key terms and definitions you need to recall.

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