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

11188 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

The price of coffee beans rose from $1.15 to $1.40 between June and August 2017. A possible cause of this rise is: a) Improved weather conditions in coffee-growing countries; b) An increase in national minimum wage in coffee growing countries.


Explain some benefits of a Monopoly


What is market failure?


Assess the extent to which a depreciation of the Pound will positively effect economic performance within the Uk.


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