Economics (AS & A Level) · May / June 2023 · Paper 12 · Question 11

The diagram shows the supply curve of a firm. Which statement about the price elasticity of supply (PES) along this curve is correct?

1. APES is greater than unity at all points along the supply curve.
2. BPES is the same at all points along the supply curve.
3. CPES is elastic when the price is low and becomes more inelastic when the price rises.
4. DPES rises when the supply rises.

As printed in the paper