Economics (AS & A Level) · May / June 2022 · Paper 13 · Question 6

The supply of a new drug to relieve muscle pain is very inelastic over a short period of time. The supply of printed newspapers is much more elastic over the same time period. What could explain the difference in elasticity of supply of the drug and printed newspapers in this time period?

1. Anew drug: cost per unit is low; printed newspapers: cost per unit is high
2. Bnew drug: discovery is by chance; printed newspapers: takes longer to produce
3. Cnew drug: research and development essential; printed newspapers: excess capacity in printing
4. Dnew drug: similar products available; printed newspapers: similar products unavailable

As printed in the paper