Economics (AS & A Level) · May / June 2025 · Paper 13 · Question 11
9708Price elasticity of supply
A construction firm estimates that the price elasticity of supply in building a nuclear power plant is +0.1. What might explain this?
- AThe firm can easily find new land as required.
- BThe firm is competing with many other construction firms.
- CThe firm needs time to hire the highly skilled labour required.
- DThere is a lack of close substitutes for nuclear power.
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Correct answer: C. The firm needs time to hire the highly skilled labour required.
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