Changes

One more and we're done.  The price elasticity of '''''supply''''' is the percent change in quantity supplied divided by the percent change in price for the good.  Mathematically, that is:

One more and we're done.  The price elasticity of '''''supply''''' is the percent change in quantity supplied divided by the percent change in price for the good.  Mathematically, that is:

:<math>Pes = \frac{% \Delta (Quantity_supplied _of_good)}{% \Delta (Price_change_in_good)}</math>

:<math>Pes = \frac{% \Delta (\mbox{Quantity supplied of good})}{% \Delta (\mbox{Price change in good})}</math>

If the supply elasticity (Pes) is inelastic (less than 1), then it is difficult for suppliers to react quickly to a change in price.  If Pes is elastic (more than 1), then suppliers can react quickly to a change in price, as in supplying more goods when the price increases.

If the supply elasticity (Pes) is inelastic (less than 1), then it is difficult for suppliers to react quickly to a change in price.  If Pes is elastic (more than 1), then suppliers can react quickly to a change in price, as in supplying more goods when the price increases.