P.E.S

Question 1

What is price elasticity of supply

Answer 1

proportional change in supply in response to a proportional change in price

Question 2

What type is the relation

Answer 2

positively related
i.e one goes up so does other

Question 3

What is the fomula for PES

Answer 3

%change in supply / %change in price

Question 4

What are the different numbers to indicated what type of supply it is

Answer 4

elastic > 1
inelastic < 1
unitary = 1

Question 5

How do you calculate a percentage change

Answer 5

new-old/old * 100

Question 6

What effects price elasticity of supply (4)

Answer 6

Time i.e what a firm can supply in short vs long

availability of resource

number of producers

improvement in technology

Question 7

If something is PES elastic what does it mean

Answer 7

it responds well to changes in price

Question 8

If something is PES inelastic what does it mean

Answer 8

it is fairly unresponsive to changes in price

Question 9

What is atypically PES elastic

Answer 9

manufactured goods because easy to change working hours

Question 10

What is typically PES inelastic

Answer 10

long term constructions and perishable goods