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SingaporeEconomicsQuick questions

Elasticity and Its Applications

Quick questions on Price elasticity of supply explained: H2 Economics

4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is the role of time?
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Economists distinguish three time frames:
What is q1?
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Price rises 5 percent and quantity supplied rises 2 percent. Calculate PES and classify it. [2 marks]
What is q2?
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Explain why supply is more elastic in the long run. [3 marks]
What is q3?
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Give one example of a good with perfectly inelastic supply and explain why. [2 marks]

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