Card 1 of 22
How is price elasticity of supply calculated?
A
$$PES = %ΔP%ΔQs\dfrac{\%\Delta P}{\%\Delta Q_s}%ΔQs%ΔP$$
B
$$PES = %ΔQs%ΔP\dfrac{\%\Delta Q_s}{\%\Delta P}%ΔP%ΔQs$$
C
$$PES = %ΔQd%ΔP\dfrac{\%\Delta Q_d}{\%\Delta P}%ΔP%ΔQd$$
D
- Shortages and price spikes can persist.
- Higher long-run PES lets output catch up and prices settle.
Card 1 of 22
1.2.5 Elasticity of supply Flashcards
22 flashcards on Edexcel A A Level Economics 1.2.5 Elasticity of supply: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.