Economics · May / June 2025 · Paper 11 · Question 8
2281Price elasticity of supply (PES)
The price elasticity of supply (PES) of coffee is calculated as +0.2 for the current year and +2.0 in the long run. Why is the PES of coffee higher in the long run?
- ACoffee plants take several years to grow.
- BConsumers will not buy coffee at higher prices.
- CThere are many substitutes for coffee.
- DThere are no stocks of coffee.
As printed in the paper
Show the answer
Correct answer: A. Coffee plants take several years to grow.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.