O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2023 · Q61 Mark

The markets of four products are all in equilibrium. The table gives the value of the price elasticity of supply (PES) for each product. The demand for each product shifts to the right by 5000 units at all prices. Which product will have the largest price increase?

Aprice elasticity of supply 0

Bprice elasticity of supply 0.6

Cprice elasticity of supply 1.0

Dprice elasticity of supply 2.5

✓ Correct answer

A: price elasticity of supply 0

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2023 Paper 1 Variant 2, question 6.

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