2.5 Elasticity of Supply Flashcards by Sam Heron

Q

What is PES?

A

Measures responsiveness of quantity supplied to a change in price

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Q

PES formula?

A

% change in Qs / % change in P

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Q

Factors affecting PES?

A

PSSST
1) Productivity
2) Spare stocks
3) Spare capacity
4) Substitutability of factor inputs
5) Time period

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