Economics (AS & A Level) · Oct / Nov 2022 · Paper 11 · Question 12
9708Price elasticity of supply
When is the supply curve for a car manufacturing firm most likely to be price elastic?
- Awhen the firm finds it difficult to recruit new labour
- Bwhen the firm has a large quantity of stock
- Cwhen the firm is operating in the short run
- Dwhen the firm is operating near to full capacity
As printed in the paper
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Correct answer: B. when the firm has a large quantity of stock
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