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Edexcel IGCSE Economics 1.1.4.j calculate PES

Edexcel IGCSE Economics 1.1.4.j calculate PES
Edexcel IGCSE Economics syllabusEconomics 4EC1First assessment 2019

Practise PES calculation questions by dividing percentage changes, showing working and rearranging for quantity supplied.

How this is tested

  • Calculate PES by dividing percentage change in quantity supplied by percentage change in price.
  • Show working clearly and round the elasticity value to two decimal places when asked.
  • Rearrange the PES formula to find the percentage change in quantity supplied.

Question 2(c)

[Maximum number: 2]

A country is able to produce agricultural and non-agricultural goods with a given amount of resources. Its production possibility curve (PPC) is shown in Figure 2.

Figure 2

Figure 2

D

A firm increases supply by 5.4% following a price increase of 7.8\%.

Calculate, to two decimal places, the price elasticity of supply (PES) for the firm. You are advised to show your working.