[This is part of the series: The Complete Guide To Economics 101.]
What is the price elasticity of supply?
The Price Elasticity of Supply is a measure of how sensitive quantity supplied of a good, or service, is to changes in price.
For example:
If the price of apples decreased by 20%, what would be the impact on quantity supplied for apples?
Or, if the price of cotton increased by 50%, what would be the impact on quantity supplied for cotton?
(Price Elasticity of Supply) = (% change in quantity supplied) / (% change in price)