#Supply
Автор: Kashif Sir Commerce
Загружено: 2026-03-09
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• #Supply | Price Elasticity of Supply | Ec...
The Percentage Method of measuring Price Elasticity of Supply (PES) explains how responsive the quantity supplied of a good is when its price changes. In this method, elasticity is calculated by comparing the percentage change in quantity supplied with the percentage change in price.
Formula:
Price Elasticity of Supply (PES) =
Percentage Change in Quantity Supplied ÷ Percentage Change in Price
If the percentage change in supply is greater than the percentage change in price, supply is elastic.
If it is less than, supply is inelastic.
If both changes are equal, supply is said to be unitary elastic.
This method helps students clearly understand how producers respond to price changes and is widely used in numerical problems in economics.
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