Inelastic goods are often described as necessities. PES = ∞∞ (i.e., infinity): The supply curve is horizontal there is extreme change in demand in response to very small change in prices.PES = 0: The supply curve is vertical there is no response of demand to prices.The price elasticity of supply has a range of values: The state of these factors for a particular good will determine if the price elasticity of supply is elastic or inelastic in regards to a change in price. There are numerous factors that directly impact the elasticity of supply for a good including stock, time period, availability of substitutes, and spare capacity. The price elasticity of supply (PES) is the measure of the responsiveness in quantity supplied (QS) to a change in price for a specific good (% Change QS / % Change in Price).
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