2.6 PES

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PES is a measure of responsiveness of quantity supplied to a %change in price of the good.
PES= %change in qs/%change in price.

PES=0 perfectly inelastic, supply curve is vertically straight, will not change even if price changes. Seats in a theatre
PES=0-1, relatively inelastic, supply curve is steep, qs changes less proportionately than price, primary goods
PES=1, unitary elasticity, supply curve is a 45°, qs changes proportionate to price
PES=1-♾️, relatively elastic, supply curve is flatter, qs changes more proportionately than price, manufactured goods
PES=♾️, perfectly elastic, supply curve is horizontally straight, QS falls to 0 at any other price, no example

PES is inelastic generally
Mobility: Farmers wont be able to switch from production of one crop to another quickly
Barriers to entry: In most countries barriers to entry will be high due to capital requirements and land requirements
Inventory: some crops can not be stored for long times
Spare capacity: labour intensive production hence production capacity is limited
Time period: takes very long to produce

PES is elastic generally
Mobility: Resources are much more interchangeable between products than for primary goods
Barriers to entry: Can not be generalised but there are lesser barriers on average than for primary goods
Inventory: Most manufactured goods can be stored for very long periods of time
Spare capacity: Capital intensive production so more product can be produced.
Time period: Can be produced relatively quickly on average