Price Elasticity of Supply (PES)

Per (Tse) price elasticity of supply is a measure of how much the quantity supplied of a good response to a change in the price of that good.

When calculated, supply is said to be
Elastic: if price elasticity of supply is greater than 1
Inelastic: if price elasticity of supply is smaller than 1
Unit elastic: if price elasticity of supply is equal to 1

Determinants of price elasticity of supply:
- Time period: supply is more elastic over longer periods
- Ability of suppliers to change the amount of the good they sell (Picasso paintings or beach front land is inelastic)

Work cited:
Tse, Harry. “Lecture-3 Equilibrium Elasticity.” 2025.