CAIE A-Level Economics 2.3.2 PES Formula

Practise calculating PES from percentage changes, equations, tables and diagrams and rearranging the formula to find output responses across short-run and long-run cases.

Exam points

calculate percentage price and quantity-supplied changes from the correct original values
divide percentage quantity-supplied change by percentage price change and interpret the positive result
rearrange PES to find a new output or compare short-run and long-run quantity responses

[Maximum number: 1]

Four firms produce furniture. The table shows the price elasticity of supply (PES) for each firm.
If the price of furniture rises by 5% which firm would experience an increase in quantity supplied of 2.5% ?

PES for

furniture

2.5

2.0

0.6

0.5

All question bank results loaded

2.3.2—PES formula question 1