Price Elasticity of Supply

Explain the determinants of supply for an agricultural product, such as rice, and consider which of these determinants is likely to be of the greatest significance at the present time.

Assess whether the supply of agricultural products is likely to be more price elastic or less price elastic than the supply of manufactured products.

Explain the factors that are likely to make the supply of a product relatively price inelastic.

Discuss the ways in which businesses might attempt to increase the price elasticity of supply of their products. Assess whether these attempts are likely to be successful.

Explain two factors that are likely to make the supply of a product relatively price-inelastic.

Discuss the policies that governments might use to increase the price elasticity of supply of essential goods, and assess the likely effectiveness of such policies.

Explain any two factors that cause the supply of a product to be price-inelastic.

Discuss the policies that a government might adopt to increase the price elasticity of supply of agricultural goods in an economy and consider which policy is likely to be most effective.

Explain two factors that are likely to make the supply of a product relatively price inelastic.

Discuss how governments might attempt to make the supply of an essential good more responsive to a change in its price and assess the likely effectiveness of such attempts.