Unit 2.6 · Elasticity of Supply
PES of Primary Commodities vs Manufactured Goods
AO2HL
Syllabus Requirement
Explains why PES is typically lower for primary commodities due to production rigidity and time lags. HL only.
Assessment Objectives
AO2Application and Analysis
HLThis topic is assessed at Higher Level only.
Summary
This topic examines the differences in price elasticity of supply (PES) between primary commodities and manufactured goods. Understanding these differences is important for analyzing how quickly suppliers can respond to price changes in various markets.