A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2023 · Q111 Mark
The diagram shows the supply curve of a firm. [Figure 11.1] Which statement about the price elasticity of supply (PES) along this curve is correct?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
APES is greater than unity at all points along the supply curve.
BPES is the same at all points along the supply curve.
CPES is elastic when the price is low and becomes more inelastic when the price rises.
DPES rises when the supply rises.
✓ Correct answer
D: PES rises when the supply rises.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The price system and the microeconomy and see which topics are most likely to come up next.
Sign up free →