0455
Price Elasticity of Supply (PES)
Allocation of Resources · 3 question types
Exam Frequency Analysis
Past paper frequency (2018 to 2024)
This topic accounts for approximately 10% of your exam marks.
stable
Medium
Stable10%
PES definition, formula, calculation, and determinants appear on most papers; typically 4 to 6 marks paired with PED or market analysis questions.
PES is the percentage change in quantity supplied divided by the percentage change in price. Both numbers are percentages, not raw unit changes. The percentage-change formula is the same as for PED:
PES is positive: the supply curve slopes upward, so a price rise produces a rise in quantity supplied. Both percentage changes have the same sign, so the ratio is positive. There is no sign-convention trap here, unlike PED.