Cashew Nuts and Price Elasticity of Supply

Flashcards covering key terms and concepts related to cashew nut production and price elasticity of supply (PES).

Price elasticity of supply (PES)

A numerical measure of the responsiveness of the quantity supplied to a change in the price of the product.

Price elastic supply

The quantity supplied responds more than proportionately to a change in its price.

Price inelastic supply

The quantity supplied responds less than proportionately to a change in its price.

Volatile Price

Change with time, which is particularly important for manufacturers and farmers whose product quality changes, and speed and ease with which supply can respond.