Edexcel IGCSE Economics 1.1.4.k price elastic and inelastic supply diagrams

Practise PES diagram questions by drawing the supply curve and labelling P1, P2, Q1 and Q2 after a price change in context.

Exam points

Draw a price elastic supply curve showing quantity changing more than price.
Label P1, P2, Q1 and Q2 to show the impact of a price change on quantity supplied.

[Maximum number: 3]

Draw a supply curve on the diagram below that has price elastic supply (PES). Label the impact of a price change from $\mathrm{P}_{1}$ to $\mathrm{P}_{2}$ and its impact on quantity from $\mathrm{Q}_{1}$ to $\mathrm{Q}_{2}$ .

Every year in the UK, heavy rainfall is a cause of severe flooding in some areas. Calderdale in Yorkshire has been badly affected for a number of years. Increased water levels from the River Calder caused damage to residential properties, business premises and roads. The UK Government provided a $£ 32 \mathrm{~m}$ flood defence scheme to try to reduce the problem.
(Source adapted from: https://www.halifaxcourier.co.uk/news/politics/ps44m-to-be-spent-

on-flood-defences-in-hebden-bridge-3327606)

A02 3 marks

Award 1 mark for drawing elastic supply curve, labelled Award 1 mark for showing smaller price change from $\mathrm{P}_{1}$ to $\mathrm{P}_{2}$ on the axis

Award 1 mark for showing a greater change in the quantity $\mathrm{Q}_{1}$ to $\mathrm{Q}_{2}$ on the axis

Figure for Answer to Question 1.1.4.k Price-elastic and price-inelastic supply diagrams question 1 — Edexcel IGCSE Economics

Quantity

(3)

Question
number

With reference to the data above and your knowledge of economics, analyse why the UK Government might provide flood defences.

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1.1.4.k Price-elastic and price-inelastic supply diagrams question 1