PES and responsiveness
PES and responsiveness
Price elasticity of supply, or PES, measures how strongly quantity supplied responds to a change in price. It is calculated using:
PES=% change in quantity supplied% change in price \text{PES}=\frac{\%\text{ change in quantity supplied}}{\%\text{ change in price}} PES=% change in price% change in quantity suppliedStep-by-step lessons on CIE Intl A Level Economics 2.3.5 implications for speed and ease with which firms react to changed market conditions. Each one builds up to exam-style questions.