PES Flashcards
1
Q
What is PES?
A
The responsiveness of QS of a good to a change in its price
2
Q
What is the formula of PES?
A
% change in quantity supplied / % change in price
3
Q
Why is PES positive?
A
Because QS is positively related to price
4
Q
What is inelastic supply?
A
PES is between 0 and +1
5
Q
A
