Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 9
9708Price elasticity of supply
The diagram shows four supply curves. Which statement about the price elasticities of the curves is correct?
- ACurve 1 has constant infinite elasticity.
- BCurve 2 has elasticity greater than curve 4 over its whole length.
- CCurve 3 has increasing elasticity as price rises.
- DCurve 4 has decreasing elasticity as price rises.
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Correct answer: D. Curve 4 has decreasing elasticity as price rises.
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