Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 5
9708Price elasticity of supply
In which situation is the price elasticity of supply for a product most likely to be relatively low?
- ADemand for the product comes from a wide range of customers.
- BProducers in closely related industries can easily switch to making the product.
- CManufacture of the product requires highly skilled labour.
- DThe main raw material used in the production of the product is in abundant supply.
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Correct answer: C. Manufacture of the product requires highly skilled labour.
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