Exam (elaborations)
PES and Maximum pricing questions and answers verified 2024
- Course
- Institution
PES and Maximum pricing questions and answers verified 2024
[Show more]
Content preview
PES and Maximum pricingWhat is PES - correct answer ✔Price elasticity of supply is the
responsiveness of supply of a product to a change in price of the product itself
When price of a product changes, how much does supply change by
What is the equation for PES - correct answer ✔PES = % change in quantity
supplied / % change in price
When is PES price elastic / inelastic - correct answer ✔Price inelastic supply
- S: <1
Price elastic: S>1
Unitary elasticity =1
Examples of perfectly elastic supply - correct answer ✔Aeroplane tickets,
cinema tickets, night clubs
When is PES elastic - correct answer ✔If there is a quick production time, a
lot of fast moving consumer goods
Anything where there is a lot of stock being held in a warehouse
Raw materials are redily available
When is PES inelastic - correct answer ✔Takes longer time to manufacture,
produce or grow
The property market, you can't just build houses
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82977 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now