Price Elasticity of Supply Calculator

Calculate Price Elasticity of Supply (PES)



Formula

The formula to calculate the Price Elasticity of Supply (PES) is:

\[ \text{PES} = \frac{S}{P} \]

Where:

What is Price Elasticity of Supply?

Price Elasticity of Supply (PES) is a measure of how much the quantity supplied of a good changes in response to a change in its price. It is calculated as the ratio of the percentage change in supply to the percentage change in price. A higher PES value indicates that supply is more responsive to price changes, while a lower PES value indicates that supply is less responsive.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Price Elasticity of Supply:

\[ \text{PES} = \frac{20}{10} = 2 \]

The Price Elasticity of Supply is 2.