Price Elasticity of Supply:
It is the degree of responsiveness of quantity supplied of a commodity to a change in the price of the commodity.
Measurment of Price Elasticity of Supply (PES)
It is measured as percentage change in quantity supplied divided by percentage change in the market price of the commodity.
Where Qs=Initial Quantity Supplied
P=Initial Market Price
ΔQs= Change in Quantitty Supplied (New Quantity minus Initial Quantity)
ΔP = Change in Price (New Price minus Initial Price)