Price Elasticity of Supply (PES) Flashcards
1
Q
What is PES
A
price elasticity of supply is the responsiveness of supply for a good or service to a change in its price (measure in a numerical value greater then 0)
2
Q
PES equation
A
% change in quantity supplied /
% change in price
3
Q
What does the PES graph look like
A
y-axis is price, x-axis is quantity, graph is upwards sloping
