A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2022 · Q91 Mark
The diagram shows two linear supply curves labelled S₁ and S2, where S2 is a 45° line. Which statement about the price elasticity of supply 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.
AThe price elasticity of supply is different at every point along both S₁ and S2.
BThe price elasticity of supply of S₁ is elastic and S2 is unit elastic.
CThe price elasticity of supply of S₁ is inelastic and S2 is unit elastic.
DThe price elasticity of supply is unit elastic at every point along both S₁ and S2.
✓ Correct answer
D: The price elasticity of supply is unit elastic at every point along both S₁ and S2.
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