Day: April 1, 2022

The government fixes a minimum price for a product above the current equilibrium price.

Which value for the product’s price elasticity of supply will result in the smallest excess supply in its market?

Select ONE answer:

1. between zero and one
2. greater than one
3. one
4. zero

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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