Please enable JavaScript.
Coggle requires JavaScript to display documents.
Price Elasticity of Supply (Determinants (Time (momentary (perfectly…
Price Elasticity of Supply
Quantity supplied X
Price of Goods itself
formula
PES = 2.14
change in 1% of Y
cause Qs to change 2.14%
Values
0 <= PES <= +∞
positive value
(law of supply)
Determinants
Time
momentary
perfectly inelastic
short-run
(fixed input)
inelastic
long-run
(input variable)
elastic
Cost of production
(rate of cost rise as output expands)
Resource availability
rare/ unique
common
Ease of storage