Price Elasticity of Supply Flashcards
1
Q
Formula of PES
A
% change in quantity supplied ÷ % change in price
2
Q
When is PES elastic?
A
When PES > 1
3
Q
When is PES inelastic?
A
When PES is less than 1 but greater than 0
4
Q
When is there unitary elasticity of supply?
A
When PES = 1
5
Q
Factors that affect PES
A
- Agility
- Perishable goods
- Recessionary period
6
Q
Is supply more elastic or more inelastic in short run?
A
Inelastic
7
Q
Is supply more elastic or more inelastic in long run?
A
Elastic
