A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2011 · Q81 Mark

A manufacturer has estimated that the price elasticity of supply of ice cream is +1.5. If the demand for ice cream rises and price increases by 10%, how much more will the manufacturer supply to the market?

A0.15%

B1.5%

C15%

D50%

✓ Correct answer

C: 15%

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.

About this question

Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2011 Paper 1 Variant 2, question 8.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

The price system and the microeconomyFeb/Mar 20171m

Jam and honey are substitutes. Honey and beeswax are in joint supply. Other things being equal, what will be the resu…

The price system and the microeconomyFeb/Mar 20171m

For price to act as a rationing mechanism for a final product, the effect of a rising price must be to

The price system and the microeconomyFeb/Mar 201720m

Explain the factors that are likely to make the supply of a product relatively price inelastic.

Basic economic ideas and resource allocationFeb/Mar 20171m

What is most important for the effective operation of the division of labour in a modern economy?

Basic economic ideas and resource allocationFeb/Mar 20171m

Despite much opposition, the local government in a popular tourist resort built a leisure centre and swimming pool wh…

Government microeconomic interventionFeb/Mar 20171m

What is the most likely purpose of a government making transfer payments, such as social security benefits, to unempl…

← Browse all past-paper questions