Economics A Level: What is Elastic PES?
-What is Perfectly Elastic Supply

Question

What is Elastic PES?
-What is Perfectly Elastic Supply

go kys · Accepted Answer

-This is when PES is Greater than 1. This means any Change in Price leads to Greater Change in Quantity Supplied. Higher the PES, Higher the Intensity 
-This is when PES is + or - Infinity. Any Fall in Price leads to Quantity Supplied being dropped to 0. Perfectly Horizontal.

Economics A Level

What is Elastic PES? -What is Perfectly Elastic Supply

-This is when PES is Greater than 1. This means any Change in Price leads to Greater Change in Quantity Supplied. Higher the PES, Higher the Intensity -This is when PES is + or - Infinity. Any Fall in Price leads to Quantity Supplied being dropped to 0. Perfectly Horizontal.

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