Exam (elaborations)
PES c. questions and answers verified 2024
- Course
- Institution
PES c. questions and answers verified 2024
[Show more]
Content preview
PES (supply elasticity )Definition of PES - correct answer ✔Measure the responsiveness of quantity
supplied to changes in price
What does PES do - correct answer ✔It looks at the behaviours of firms and
not consumers
Formula of PES - correct answer ✔%change in quantity supplied/ % change
in price
What are answers generally in PES - correct answer ✔They are usually
positive- elastic. A price rise will signal to firms to make more of the product
(as profit potential is higher)
Refer to diagrams - correct answer ✔Of elastic and inelastic supply curve
Examples of inelastic supply - correct answer ✔Crops and Housing
- These goods are PES inelastic
- Since it takes time to produce these goods, so as price rises, supply stays
the same in the short run
PES factors - correct answer ✔- Spare capacity
- Stocks of raw materials
- Factor Substitution
- Occupationally mobile
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82977 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now