A tax on producers decreases the quantity supplied. If PES is inelastic, the quantity supplied decreases less than if PES is elastic.

A subsidy to producers increases the quantity supplied. If PES is inelastic, the quantity supplied increases less than if PES is elastic.

A price ceiling below the equilibrium price will cause a shortage. With inelastic supply, the shortage will be smaller than if supply were elastic.

A price floor above the equilibrium price will cause a surplus. With elastic supply, the surplus will be larger than if supply were inelastic.

If PES is inelastic, the price will increase more significantly than if PES is elastic.

If PES is inelastic, suppliers bear a larger burden of the tax. If PES is elastic, consumers bear a larger burden.

If PES is elastic, a subsidy will lead to a larger increase in quantity supplied.

A supply shock will cause a larger price change when PES is inelastic.

A supply shock will cause a smaller price change when PES is elastic.

The supply curve shifts leftward, increasing the equilibrium price and decreasing the equilibrium quantity. The magnitude of these changes depends on PES and PED.

Measures how sensitive the quantity supplied is to changes in price.

Es = 0; Quantity supplied doesn't change, no matter the price.

0 < Es < 1; Quantity supplied changes a little with price changes.

Es = 1; Percentage change in quantity supplied equals the percentage change in price.

Es > 1; Quantity supplied changes a lot with price changes.

Es = ∞; Quantity supplied becomes infinite with even a tiny price increase.

Producers respond a lot to price changes (supply is elastic).

Producers don't change their output much when prices change (supply is inelastic).

Es = (%ΔQs) / (%ΔP)

The amount of a good or service that producers are willing and able to offer for sale at a given price during a specific time period.

PES measures the responsiveness of quantity supplied to price changes, while PED measures the responsiveness of quantity demanded to price changes. PES is usually positive, while PED is usually negative.

Perfectly inelastic supply means quantity supplied does not change with price. Perfectly inelastic demand means quantity demanded does not change with price.

PES is affected by factors like production time, storage capacity, and availability of resources. PED is affected by factors like availability of substitutes, necessity of the good, and time horizon.

Short-run PES is generally more inelastic because firms have less time to adjust production. Long-run PES is generally more elastic because firms have more time to adjust.

Unit elastic supply means the percentage change in quantity supplied equals the percentage change in price. Unit elastic demand means the percentage change in quantity demanded equals the percentage change in price.

Elasticity is a measure of responsiveness, while slope is a measure of the rate of change. Elasticity is unit-free, while slope has units.

With elastic demand, a price decrease increases revenue. With inelastic demand, a price increase increases revenue. Elasticity of supply does not directly relate to revenue in the same way.

A tax on goods with elastic supply will lead to a larger decrease in quantity supplied and a smaller increase in price, compared to goods with inelastic supply.

A subsidy on goods with elastic supply will lead to a larger increase in quantity supplied and a smaller decrease in price, compared to goods with inelastic supply.

A change in supply is a shift of the entire supply curve due to a change in a non-price determinant of supply. A change in quantity supplied is a movement along the supply curve due to a change in price.