Unit 2.6 · Elasticity of Supply
PES Diagrams (Relatively Elastic and Inelastic Supply)
AO4Diagram required
Syllabus Requirement
Understanding how elasticity affects the steepness or flatness of supply curves.
Assessment Objectives
AO4Use of Appropriate Skills
Summary
This topic covers the concept of price elasticity of supply (PES) and how it is represented in diagrams. Understanding PES is important for analyzing how responsive firms are to price changes, which affects their supply decisions in different market conditions.