Economics · May / June 2020 · Paper 11 · Question 7
2281Price elasticity of supply (PES)
Lithium is an essential metal for the production of electric cars. Following a 10% increase in the price of lithium, supplies increase by 15%. This led to a 5% increase in the price of electric cars. What is the price elasticity of supply (PES) for lithium?
- A0.33
- B0.66
- C1.50
- D2.0
As printed in the paper
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Correct answer: C. 1.50
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