1.2.5 elasticity of supply

Question 1

What is PES

Answer 1

responsiveness of quantatiy supplied in relation to a change in price.

price elastic = increase in price = EVEN MORE increase in supply

price inelastic = supply is not responsive to a change in price.

Question 2

Influences on price elasticity of supply?

Answer 2

• Resources/factors of production are flexible and mobile.
• How easy it is to produce/store
• Time