O-LevelEconomicsThe allocation of resources2281/12 · May/June 2015 · Q61 Mark

A product has a price elasticity of supply of +2. A change in price causes the quantity supplied to change from 100 units to 120 units. What is the price change?

Afall of 10%

Bfall of 40%

Crise of 10%

Drise of 40%

✓ Correct answer

C: rise of 10%

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2015 Paper 1 Variant 2, question 6.

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