2.6.1—Price elasticity of supply Topic Practice
2.6.1—Price elasticity of supply Topic Practice
Students practise calculating price elasticity of supply (PES) from percentage changes in price and quantity supplied using real market data.
How this is tested
- calculate PES as %DeltaQs divided by %DeltaP, such as butter supply after a price change
- state that PES = 0 for fixed-capacity markets, such as 80,000 World Cup final tickets
- interpret PES < 1 as inelastic supply, shown by a steep supply curve for petrol