PES

Question 1

def of PES (follow logic -> not actual def)

Answer 1

when price of good changes -> how easily / quickly can supplier can react

Question 2

what is elastic in PES

Answer 2

INCREASE price __ INCREASE supply

Question 3

what is INelastic in PES

Answer 3

DECREASE price _ DECREASE supply
-> shutdown production

Question 4

what elastic like in graph

Answer 4

run through y-axis (doesn’t intersect x-axis (at least in the positive quadrant)

Question 5

what inelastic like in graph

Answer 5

run through x-axis (does’t intersect y-axis)

Question 6

what is unitary elastic in graph

Answer 6

run through origin

Question 7

PES in commodity

Answer 7

commodities can not react quickly
-> extremely inelastic supply

Question 8

what is perishable goods

Answer 8

goods go off quickly e.g. vegetables , fruit

Question 9

what should be done to help commodities

Answer 9

+) store the product (in case price INCREASE)
+) reduce the production quickly

Question 10

if time period INCREASE …

Answer 10

INCREASE in elastic (even commodities)