CAMBRIDGE INTERNATIONAL AS & A LEVEL ECONOMICS

Language worksheet 9.1 answers

Price elasticity of supply
1 a The percentage change in quantity supplied is greater than the percentage change in price.
b The percentage change in quantity supplied is less than the percentage change in price.
c The firm can sell an infinite quantity of a good at a given price.
d The firm can only sell a limited quantity of a good regardless of price.
e At least one factor of production is fixed.
f All factors of production are variable.

2 Agricultural goods

a why Perishable goods, they take a long time to make.

b policies Government could subsidise agricultural production or incentivise more people to train as farmers.

c impact More food would be available to the domestic population and we could sell any surplus abroad.

Housing

a why Specialist skills restricted, restricted land available, long time to make

b policies Allow to build on green belt, subsidies for developers; 3D printing (?)

c impact More housing available for people; prices may become more affordable.

Ventilators in hospitals

a why Cannot be mass produced (complex engineering); factors of production cannot be transferred easily

b policies Tax cuts for producers. Train people in the production. Removing patent laws.

c impact Price will fall. No shortage.

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Cambridge International AS & A Level Economics – Vlachonikolis, Collins & Croft © Cambridge University Press 2021