What is the mathematical formula for price elasticity of supply?

1 Answer
Dec 25, 2015

It follows the same logic of price elasticity of demand.


The formula is #epsilon=((DeltaQ)/Q)/((DeltaP)/P)=(%DeltaQ)/(%DeltaP)#

That is, the quantity supplied will vary proportionally to changes in prices, depending on the elasticity of the good in question.