This may sound dumb, but does Price Elasticity of Supply:
"Measure the responsiveness of supply to a change in price"
"Show the relationship between price and supply"
The thing is, I'm unsure of whether it actually measure the responsiveness of supply to a change in price because supply does not always change with price - so would that definition be correct?
What is the actual definition of Price Elasticity of Supply? Watch
- Thread Starter
- 13-05-2016 21:16
- 13-05-2016 21:37
First one. 2nd one is not very accurate. You can also just do the formula for PES for a definition mark
- 13-05-2016 21:45
First one, but I find just writing out the formula saves a lot of time
- 14-05-2016 08:36
Price elasticity of supply explained here: