Price elasticity of supply (PES):   Range of values Determinants Time Availability of producer substitutes Costs

Demand and Supply Schedule for Good Y: Unit price of y Quantity demanded of y Quantity supplied of y Price elasticity of demand of y (2 decimals) Price elasticity of supply of y (2 decimals) $100 10 40 n/a n/a $90 11 35     $80 12 30     $70 13 25     $60 14 20     $50 15 15     $40 16 10     $30 17 5     $20 18 1     $10 19 0

Elasticity of supply will increase when:

The price elasticity of supply for basmati rice (an aromatic strain of rice) is likely to be which of the following? multiple choice Higher in the long run than the short run, because farmers cannot easily change their decisions about how much basmati rice to plant once the current crop has been planted. Low in both the long and short runs, because rice farming requires only unskilled labor. High in both the long run and the short run, because the inputs required to produce basmati rice can easily be duplicated. High, because consumers have a lot of other kinds of rice and other staple foods to choose from.