With reference to the extract, how price elastic would supply of nuclear energy be?

The Price Elasticity of Supply for energy generated from nuclear power plants is likely to be quite low, likely below 1 – PES is calculated by %change in quantity supplied / %change in price, indicating that a %increase in price would result in a less than proportional increase in quantity supplied. One of the factors influencing PES is time taken to fill demand – according to the extract, building a new power plant at Hinkley Point has taken 10 years, suggesting that an increase in price cannot necessarily be met by a quick increase in quantity supplied. 

JK
Answered by Jack K. Economics tutor

10987 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain two causes of price inflation


Can the creation of a labour union actually cause a loss of employment?


Are taxes an effective way to stop people smoking?


Describe and explain the factors that determine supply and demand, and use diagrams to support your answer.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning