Economics (AS & A Level) · May / June 2021 · Paper 11 · Question 12
9708Price elasticity of supply
The price elasticity of supply of a good is elastic. Assuming all production is sold, which combination correctly describes the link between the impact of a rise in price on the quantity supplied and the total revenue received by the firm?
- Aquantity supplied rises by greater percentage than price; total revenue falls
- Bquantity supplied rises by greater percentage than price; total revenue rises
- Cquantity supplied rises by smaller percentage than price; total revenue falls
- Dquantity supplied rises by smaller percentage than price; total revenue rises
As printed in the paper
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Correct answer: B. quantity supplied rises by greater percentage than price; total revenue rises
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