
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:
- between zero and one
- greater than one
- one
- 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
- Not correct
- Not correct
- Not correct
- Correct
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