Short-Run and Long-Run Price Elasticity of Supply
Study Edexcel Economics PES questions by explaining why supply is usually more inelastic in the short run and more responsive in the long run.
- Syllabus
- 2019
- Course
- Economics YEC11
- Level
- AS
Exam points
- Define price inelastic supply as a PES between zero and one, where supply changes less than proportionately.
- Explain that supply is often more inelastic in the short run but becomes more elastic over time.
- Apply the values in the question, such as short-run PES 0.07 and long-run PES 0.57.
