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What does price elasticity of supply (PES) measure?
A
How responsive quantity supplied is to a change in the good’s own price.
B
It states that output rises when price rises, but not the size of the change.
C
- Firms have more time to use overtime and materials.
- New production capacity can be built.
D
In the chair example, PES equals 4, so supply is price elastic.
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2.3.6 Price elasticity of supply Flashcards
25 flashcards on OCR GCSE Economics 2.3.6 Price elasticity of supply: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.