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The price elasticity of supply (PES or E s) is commonly known as “a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price.” Price elasticity of supply, in application, is the percentage change of the quantity supplied resulting from a 1% change in price.
An example is the Morse/Long-range potential. It is helpful to use the analogy of a landscape: for a system with two degrees of freedom (e.g. two bond lengths), the value of the energy (analogy: the height of the land) is a function of two bond lengths (analogy: the coordinates of the position on the ground).
The price elasticity of supply measures how the amount of a good that a supplier wishes to supply changes in response to a change in price. [14] In a manner analogous to the price elasticity of demand, it captures the extent of horizontal movement along the supply curve relative to the extent of vertical movement.
Since supply is usually increasing in price, the price elasticity of supply is usually positive. For example, if the PES for a good is 0.67 a 1% rise in price will induce a two-thirds increase in quantity supplied. Significant determinants include: Complexity of production: Much depends on the complexity of the production process. Textile ...
For example, when demand is perfectly inelastic, by definition consumers have no alternative to purchasing the good or service if the price increases, so the quantity demanded would remain constant. Hence, suppliers can increase the price by the full amount of the tax, and the consumer would end up paying the entirety.
An example of perfect inelastic supply curve is unimproved land ( it is a need to distinguish the land and the improvements, that might be applied) or crude oil ...
Figure 6:Reaction Coordinate Diagrams showing reactions with 0, 1 and 2 intermediates: The double-headed arrow shows the first, second and third step in each reaction coordinate diagram. In all three of these reactions the first step is the slow step because the activation energy from the reactants to the transition state is the highest.
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