PES Flashcards
(6 cards)
1
Q
what is the definition of PES?
A
the responsiveness of quantity supplied given a change in price
2
Q
what is the equation for PES?
A
%changeQS/%chnageP
3
Q
what is the law of supply?
A
PES is always negative
4
Q
if the PES is below 1 what does this indicate?
A
supply is price inelastic
5
Q
if the PES is above 1 what does this indicate?
A
supply is price elastic
6
Q
what is the acronym used for PES?
A
production lag
stocks
spare capacity
substitutes of FOPs
time
