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A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2020 · Q61 Mark

When will a manufacturer’s ability to increase the quantity supplied in the short run be greater?

Awhen labour is immobile
Bwhen spare capacity exists
Cwhen the product is perishable
Dwhen unemployment is low

✓ Correct answer

B: when spare capacity exists

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About this question

Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2020 Paper 1 Variant 2, question 6.

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