A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2020 · Q101 Mark

A good has a price elasticity of supply of 2.0. The current quantity supplied is 300 units per week at a market price of $20 per unit. The firm raises the price to $25 per unit. What will the new quantity supplied be per week?

A150 units

B375 units

C400 units

D450 units

✓ Correct answer

D: 450 units

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2020 Paper 1 Variant 2, question 10.

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