Micro 1.2 PES Flashcards
1
Q
What is PES?
A
The responsiveness of quantity supplied to a proportionate change in price
2
Q
What is the PES formula?
A
% change in quantity supplied / % change in price
3
Q
What is the PES of a perfectly inelastic good?
A
0
4
Q
What is the PES of a price inelastic good?
A
0~1
5
Q
What is the PES of a unitary good?
A
1
6
Q
What is the PES of a price elastic good?
A
> 1
7
Q
What is the PES of a perfectly elastic good?
A
infinite
