StellarPrice Elasticity Of Supply
Price Elasticity of Supply (PES) measures how responsive the quantity supplied of a good or service is to changes in its price. Similar to the concept of price elasticity of demand, which measures consumers' sensitivity to price changes, PES focuses on producers' sensitivity. A high elasticity of supply indicates that producers can quickly increase output in response to a price increase, whereas low elasticity suggests that production levels remain relatively stable despite price changes.