PES measures how much:
Price changes when supply changes
Quantity supplied changes when price changes
Demand changes when price changes
Quantity demanded changes when income changes
If PES = 0, supply is:
Perfectly elastic
Unit elastic
Perfectly inelastic
Price elastic
A good with PES > 1 has:
Inelastic supply
Elastic supply
Perfectly inelastic supply
No supply response
Which factor does not affect PES?
Spare capacity
Time period
Availability of stock
Price of substitutes
The supply of Dubai hotel rooms in the short run is likely to be:
Inelastic
Elastic