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

10484 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why does the marginal cost curve cross the average cost curve at its lowest point?


Evaluate the microeconomic impacts of a sugar tax


Evaluate whether globalisation must benefit everybody.


What is the Current Account


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences