Price elastic supply
What Price elastic supply means in Economics GCSE, as defined for AQA, OCR.
Definitions of Price elastic supply
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Reference: AQA
Occurs when the percentage change in quantity supplied is greater than the percentage change in price, with a PES value greater than 1.
When PES is greater than 1, meaning producers can easily increase output without a significant rise in costs or time delays.
When the percentage change in supply exceeds the price change, so PES > 1.
Where the percentage change in quantity supplied is greater than the percentage change in price. The PES value is greater than 1.
Topics that use Price elastic supply
- Price elasticity of supply (AQA GCSE)
- Supply (OCR GCSE)
Related terms
- Price inelastic supply
- Unitary elastic supply
- Consumer affordability
- Factor mobility
- Price elasticity of supply
- Production capacity
- Spare capacity
- Time periods
Using Price elastic supply in the exam
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