EconomicsCode 9708
Price elasticity of supply
What this topic asks you to be able to do
- how price elasticity of supply (PES) is defined
- the equation used for price elasticity of supply, and the way that calculation is carried out
- why relative percentage changes matter, and what the coefficient's size and sign show, for price elasticity of supply
- the influences on price elasticity of supply
- the consequences for how quickly and readily firms adjust to altered market conditions