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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.
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2.3.4 factors affecting price elasticity of supply Flashcards
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.