1.3.4 Price elasticity of supply Flashcards
1
Q
PES formula
A
= %∆QS / %∆£
2
Q
PES
price inelastic supply
A
PES = 0-1
∆£ leads to smaller %∆ in QS
3
Q
PES
Price elasticity supply
A
PES = <1
∆ £ leads to greater %∆ in QS
4
Q
PES
Perfectly elastic supply
A
PES = ∞
5
Q
PES
perfectly inelastic supply
A
PES = 0
∆£ lead to 0∆ in QS
6
Q
PES
unitary elastic supply
A
PES = 1
∆£ led to same ∆ in QS
