Economics · May / June 2018 · Paper 12 · Question 7

The diagram shows the supply curve for a good. [diagram: supply curve S with price ($) on vertical axis (0, 2, 4) and quantity (units) on horizontal axis (0, 10, 20, 30); dashed lines show (20, 2) and (30, 4) on the curve] What is the price elasticity of supply when the price rises from $2 to $4?

1. A0.2
2. B0.5
3. C1
4. D2

As printed in the paper