A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2020 · Q131 Mark

Four firms produce furniture. The table shows the price elasticity of supply (PES) for each firm. If the price of furniture rises by 5% which firm would experience an increase in quantity supplied of 2.5%?

A2.5

B2.0

C0.6

D0.5

✓ Correct answer

D: 0.5

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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 13.

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