A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2022 · Q101 Mark
A firm estimates that the price elasticity of supply of its product is +1.5. What does this indicate?
AThe firm has available stock.
BThe firm has no excess capacity.
CThe firm operates in a competitive market.
DThe firm raises its price by 10% and its total revenue increases by 15%.
✓ Correct answer
A: The firm has available stock.
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