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The document explains key determinants such as input availability, production complexity, factor mobility, response time, excess capacity, inventories, and research approaches using sales data and surveys.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/price-elasticity-of-supply-pes-economics-concept/665566/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/price-elasticity-of-supply-pes-economics-concept/665566.png","ImageObject",300,407,{"name":42,"@type":43},"BAd apple","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-30","2026-10-29",true,{"@type":52,"interactionType":53,"userInteractionCount":22},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"How is price elasticity of supply (PES) defined?","Question",{"text":62,"@type":63},"PES is defined as the percentage change in quantity supplied divided by the percentage change in price.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"What does it mean when PES is less than 1 or greater than 1?",{"text":67,"@type":63},"When the coefficient is less than one, supply is inelastic; when it is greater than one, supply is elastic. A coefficient of exactly one indicates unitary elastic supply.",{"name":69,"@type":60,"acceptedAnswer":70},"Which factors determine the elasticity of supply?",{"text":71,"@type":63},"Key determinants include availability of raw materials, length and complexity of production, mobility of factors of production, time to respond to price changes, excess capacity, and inventories (storage capacity and finished goods).","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},665566,1793304987,{"code":4,"msg":81,"data":82},"success",[83,87,91,95,100,105,110,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":92,"show_sort_weight":93,"slug":94},"Exam",70,"exam",{"id":96,"doc_module":4,"doc_module_name":25,"category_name":97,"show_sort_weight":98,"slug":99},5,"Comic",60,"comic",{"id":101,"doc_module":4,"doc_module_name":25,"category_name":102,"show_sort_weight":103,"slug":104},6,"Technology",50,"technology",{"id":106,"doc_module":4,"doc_module_name":25,"category_name":107,"show_sort_weight":108,"slug":109},7,"Healthcare",40,"healthcare",{"id":111,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":112,"slug":113},8,30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":96,"slug":129},19,"General","general",{"code":4,"msg":81,"data":131},{"doc_id":78,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":111,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":22,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":33,"language":139,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":12,"update_tm":79,"read_time":123},19241458193282,"https://us-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","Price elasticity of supply  \nFrom Wikipedia, the free encyclopedia Jump to: navigation, search  \nNot to be confused with Price elasticity of demand.  \nPrice elasticity of supply (PES or Es) is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price or cost.  \nThe elasticity is represented in numerical form, and is defined as the percentage change in the quantity supplied divided by the percentage change in price.  \nWhen the coefficient is less than one, the said good can be described as inelastic; when the coefficient is greater than one, the supply can be described as elastic.[1] An elasticity of zero indicates that quantity supplied does not respond to a price change: it is \"fixed\" in supply. Such goods often have no labor component or are not produced, limiting the short run prospects of expansion. If the coefficient is exactly one, the good is said to be unitary elastic.  \nThe quantity of goods supplied can, in the short term, be different from the amount produced, as manufacturers will have stocks which they can build up or run down.  \nDeterminants[edit]  \nAvailability of raw materials  \nFor example, availability may cap the amount of gold that can be produced in a country regardless of price. Likewise, the price of Van Gogh paintings is unlikely to affect their supply. [2]  \nLength and complexity of production  \nMuch depends on the complexity of the production process. Textile production is relatively simple. The labor is largely unskilled and production facilities are little more than buildings – no special structures are needed. Thus the PES for textiles is elastic. On the other hand, the PES for specific types of motor vehicles is relatively inelastic. Auto manufacture is a multi-stage process that requires specialized equipment, skilled labor, a large suppliers network and large R&D costs.[3]  \nMobility offactors  \nIf the factors of production are easily available and if a producer producing one good can switch their resources and put it towards the creation of a product in demand, then it can be said that the PES is relatively elastic. The inverse applies to this, to make it relatively inelastic.  \nTime to respond  \nThe more time a producer has to respond to price changes the more elastic the supply.[2][3] Supply is normally more elastic in the long run than in the short run for produced goods, since it is generally assumed that in the long run all factors of production can be utilized to increase supply, whereas in the short run only labor can be increased, and even then,  \nchanges may be prohibitively costly.[1] For example, a cotton farmer cannot immediately (i.e. in the short run) respond to an increase in the price of soybeans because of the time it would take to procure the necessary land.  \nExcess capacity  \nA producer who has unused capacity can (and will) quickly respond to price changes in his market assuming that variable factors are readily available.[1]  \nInventories  \nA producer who has a supply of goods or available storage capacity can quickly increase supply to market.  \nVarious research methods are used to calculate price elasticities in real life, including analysis of historic sales data, both public and private, and use of present-day surveys of customers'preferences to build up test markets capable of modelling elasticity such changes. Alternatively, conjoint analysis (a ranking of users' preferences which can then be statistically analysed) maybe used. [4]  \nSelected supply elasticities [edit]  \n􀁸 Heating Oil: 1.57 (Short Run) [6]  \n􀁸 Gasoline: 1.61 (Short Run) [6]  \n􀁸 Tobacco: 7.0 (Long Run) [6]  \n􀁸 Housing: 1.6–3.7 (Long Run) [6]  \n􀁸 Cotton  \no 0.3 (Short Run) [7]  \no 1.0 (Long Run) [7]  \n􀁸 Steel: 1.2 (Long Run, from Minimills) [8]  \nPrice elasticity of supply (Pes) measures the relationship between change in quantity supplied and a change in price.  \n􀁸 If supply is elastic , producers can increase output w","cbCaiactIm3gnCta","https://ap.wps.com/l/cbCaiactIm3gnCta","pdf",197834,"English","# Price Elasticity of Supply (PES)\n## Definition and Interpretation\n## Determinants of Elasticity\n## Selected Supply Elasticities\n## Formula and Key Cases\n## Factors Affecting Elasticity\n## The Non-Linear Supply Curve","[{\"question\":\"How is price elasticity of supply (PES) defined?\",\"answer\":\"PES is defined as the percentage change in quantity supplied divided by the percentage change in price.\"},{\"question\":\"What does it mean when PES is less than 1 or greater than 1?\",\"answer\":\"When the coefficient is less than one, supply is inelastic; when it is greater than one, supply is elastic. A coefficient of exactly one indicates unitary elastic supply.\"},{\"question\":\"Which factors determine the elasticity of supply?\",\"answer\":\"Key determinants include availability of raw materials, length and complexity of production, mobility of factors of production, time to respond to price changes, excess capacity, and inventories (storage capacity and finished goods).\"}]","Price Elasticity of Supply (PES) - Economics Concept | PDF"]