Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 13

Product X has a price elasticity of supply (PES) of +2, whilst product Y has a PES of +0.2. Which statement about products X and Y is correct?

1. AX has more substitutes than Y.
2. BA 20% price fall would lead to a greater decrease in production of Y than of X.
3. CAfter a price rise, it is more difficult to increase Y's output than X's.
4. DAfter a price fall of 10%, more people would buy X than would buy Y.

As printed in the paper