What is price elasticity of supply?
Midpoint method for PES
Worked example
Classifying PES
Three extreme cases of price elasticity of supply
Determinants of supply elasticity
Time and supply elasticity
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Supply becomes more elastic as the time horizon increases
Industry examples
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PES and the effect of demand shifts
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With elastic supply, demand increase → large Q change, small P change
AP exam tips for 2.4
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Common mistakes
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Key equations
Vocabulary
Unit 2 topics
Unit 2 overview2.1Changes in Demand2.10Tax Incidence and Deadweight Loss2.11Price Controls: Ceilings and Floors2.12International Trade and Public Policy2.2Changes in Supply2.3Price Elasticity of Demand2.4Price Elasticity of Supply2.5Cross-Price Elasticity of Demand2.6Income Elasticity of Demand2.7Consumer Surplus2.8Producer Surplus2.9Market Equilibrium and Efficiency