Price Elasticity of Supply

Quick Revise

This measures the responsiveness of supply to changes in price

% change in quantity supplied / % change in price

If PES > 1 it is elastic – this means it is easy for suppliers to respond quickly to price changes

If PES < 1 it is inelastic – this means it is hard for suppliers to respond quickly to changes in price

Bookmark and Share

Login

Not a member? Register now