The Dynamics of Markets: Price Elasticity (Grade 11 NSC Matric Economics): Flashcards
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Price elasticity of supply definition
Price elasticity of supply definition
How responsive producers are to price changes
Formula for price elasticity of supply
Formula for price elasticity of supply
% change in quantity supplied ÷ % change in price
Why percentages used in PES
Why percentages used in PES
Allows fair comparisons across different products
Elastic supply definition
Elastic supply definition
Suppliers can easily & quickly change production levels
Inelastic supply definition
Inelastic supply definition
Suppliers find it difficult to quickly adjust production
Steeper supply curves indicate
Steeper supply curves indicate
More inelastic supply
How spare capacity affects supply elasticity
How spare capacity affects supply elasticity
Unused resources make supply more elastic
How stock levels affect supply elasticity
How stock levels affect supply elasticity
High stock levels make supply more elastic
Ease of factor substitution effect on PES
Ease of factor substitution effect on PES
Easy adaptation of resources makes supply more elastic
How time period affects supply elasticity
How time period affects supply elasticity
Longer time periods make supply more elastic