Skip to content

Course home

x
2.3.8 Importance of price elasticity of supply
x

How PES shapes market adjustment

How PES shapes market adjustment

Two supply-and-demand graphs showing that a rightward demand shift causes a small price rise and large quantity rise with elastic supply, but a large price rise and small quantity rise with inelastic supply

When demand rises, the market must adjust through a change in price, quantity traded, or both. Price elasticity of supply determines how strongly producers can change output in response to the higher price.

2.3.8 Importance of price elasticity of supply Lesson

  1. GCSE
  2. /Economics
  3. /2.3.8 Importance of price elasticity of supply

Step-by-step lessons on OCR GCSE Economics 2.3.8 Importance of price elasticity of supply. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.

Lessons