PES Flashcards
1
Q
PES
A
Measures the relationship between a change in quantity supplied and a change in price
2
Q
PES:
1+
0-1
0
♾️
A
1+ : Elastic
0-1: Inelastic
0: Perfectly inelastic
♾️: perfectly elastic
3
Q
PES Equation
A
% change in quantity supplied
———————————
% change in price
4
Q
Determinants of PES (3)
A
Time period
Availability of stock
Spare capacity
5
Q
Factor substitution
A
How easy it is to change why is being produced
