Elasticity of Supply Flashcards
(3 cards)
1
Q
define elasticity of supply
A
The responsiveness of supply to changes in price
2
Q
what is the PES equation
A
PES= % change in quantity supplied/ %change in price
3
Q
what is the elasticity of supply determined by?
A
-Land
-Labour
-Enterprise
-Capital
-time
-spare capacity
-spare stock+ components
