Measuring producer responsiveness
Measuring producer responsiveness
Price elasticity of supply (PES) measures how responsive quantity supplied is to a change in price. It shows whether producers can expand or reduce output substantially when the market price changes.
Step-by-step lessons covering AQA A Level Economics 1.3.4 Price elasticity of supply for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.