CAIE A-Level Economics 2.3.2 PES Formula

CAIE A-Level Economics 2.3.2 PES Formula
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

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.

How this is tested

  • 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

Question 10

[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