CAIE IGCSE Economics 2.7.1 Definition of PES
Practise defining PES as the responsiveness of quantity supplied to price changes, ready for short questions on elasticity of supply.
- Syllabus
- 2027–2029
- Course
- Economics 0455
2.7.1—Definition of PES question 1
[Maximum number: 2]
Advances in technology have changed how trees (wood) are cut down, transported and used in the manufacture of furniture, such as tables. Wood is in inelastic supply. Wood can be supplied in all economic systems. However, public goods are not supplied in a market economic system.
Define inelastic supply.
Define inelastic supply.
Quantity supplied / supply changes by a smaller percentage change than price (2).
Supply changing by less than price / PES less than 1 / PES <1 / supply unresponsive to change in price (1).
2
Allow one mark for PES =0.
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