Edexcel Economics AS-Level Unit 1: Markets in Action PDF

Edexcel​ ​Economics​ ​AS-level Unit​ ​1:​ ​Markets​ ​in​ ​Action Topic​ ​3:​ ​Supply 3.2 Price elasticity of supply Notes www.pmt.education The price elasticity of supply is the responsiveness of a change in supply to a change in price. The formula...

Edexcel​ ​Economics​ ​AS-level Unit​ ​1:​ ​Markets​ ​in​ ​Action Topic​ ​3:​ ​Supply 3.2 Price elasticity of supply Notes www.pmt.education The price elasticity of supply is the responsiveness of a change in supply to a change in price. The formula for this is: If supply is elastic, firms can increase supply quickly at little cost. The numerical value for PES is >1. If supply is inelastic, an increase in supply will be expensive for firms and take a long time. PES is