2.8 PES Flashcards
1
Q
Define PES
A
The responsiveness of its quantity supplied it to changes in its price
2
Q
Formula for PES
A
%change in quantity supplied / %change in price
3
Q
What are two determinants of PES?
A
Time of Production
Availability of Resources
4
Q
Explain how time of production affects PES?
A
If the product can be quickly produced, it will have a price elastic supply as the product can be quickly supplied at any price.
5
Q
Explain how availability of resources affects PES?
A
More resource (land, labour, capital) will make way for an elastic supply
