A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2020 · Q101 Mark
An increase in the popularity of air conditioning units has resulted in their price increasing by 20%. In response to this the quantity supplied increased by 30%. What can be concluded from this?
Aprice elasticity of supply = 0
Bprice elasticity of supply < 1
Cprice elasticity of supply = 1
Dprice elasticity of supply > 1
✓ Correct answer
D: price elasticity of supply > 1
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