What you’ll learn3 learning objectivesChoose one objective for a focused lesson, or study the complete topic.2.6.1Price elasticity of supply• PES equals percentage change in quantity supplied divided by percentage change in price• PES has a theoretical range of values and indicates responsiveness of supply to price• Calculation: PES, change in price, or quantity supplied from dataSyllabus objective2.6.2PES determinants and diagrams• PES depends on time, factor mobility, unused capacity, ability to store, and rate of cost increases• Diagram: relatively elastic and relatively inelastic supply• Diagram: perfectly elastic, perfectly inelastic, and unitary PES along a supply curveSyllabus objective2.6.3(HL)—PES for primary commodities• Primary commodities generally have lower PES than manufactured products• Biological, seasonal, capacity, and storage constraints can limit responsivenessSyllabus objective
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