Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 9

The diagram shows two linear supply curves labelled S1 and S2, where S2 is a 45° line. Which statement about the price elasticity of supply is correct?

1. AThe price elasticity of supply is different at every point along both S1 and S2.
2. BThe price elasticity of supply of S1 is elastic and S2 is unit elastic.
3. CThe price elasticity of supply of S1 is inelastic and S2 is unit elastic.
4. DThe price elasticity of supply is unit elastic at every point along both S1 and S2.

As printed in the paper