A-level Paper 1, June 2019Markets and Business Behaviour
A-level Paper 1, June 2019, Q1(b)
A 2.5% increase in new build house prices in one region of the UK causes a 10% increase in the number of houses built. Ceteris paribus, this suggests that supply of new house builds is:
Multiple choice1 mark
Context
Between 2016 and 2017 the average price of new build houses in the UK rose by an estimated 5.4%. Year Quantity of UK new house builds …
Aperfectly price elastic
Bperfectly price inelastic
Crelatively price elastic
Drelatively price inelastic
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