price elasticity of supply

What is the definition of price elasticity of supply

The responsiveness of supply to a change in price

What is the formula

Percentage change in quantity supplied/ percentage change in price

Perfectly inelastic supply is

A change in price leads to no change in supply

Perfectly elastic supply means

A change in price leads to an infinite change in supply

Price inelastic supply means

A change in price leads to a smaller change in supply between 0 and 1

Price elastic supply

A change in price leads to a proportionally larger change in supply - greater than 1

Unitary elasticity of supply

A change in price leads to a proportionate change in supply = 1

What are the factors affecting PES

Barrie’s to entry

Resources

Inventory

Time

Spare capacity