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Cambridge IGCSE Economics practice

Paper 2 structured question: Price elasticity of supply (PES)

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Price elasticity of supply (PES)

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Paper 2Structured Questions1 marks

Understanding supply elasticity is crucial for market analysis.

Description

Factors Influencing Supply Elasticity

Supply elasticity is influenced by various factors including time, availability of resources, and the nature of the product.

  1. a

    State two factors that determine whether supply is elastic or inelastic.

    Aim for approximately 1 distinct marking point.

    [1]

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Paper 2 structured question: Price elasticity of supply (PES)

Paper 2Structured Questions3 marks

Description

Elasticity of Supply

The elasticity of supply indicates how much the quantity supplied changes in response to price changes. Factors such as time, resource availability, and product characteristics play a role.

  1. a

    Explain how the availability of factors of production affects supply elasticity.

    Aim for approximately 3 distinct marking points.

    [3]