Supply is usually more elastic in the long run, when producers can build capacity. Goods that are hard to produce quickly (housing, farm products in season) have inelastic supply in the short run.
How to use the Price Elasticity of Supply Calculator
- Initial price
- New price
- Initial quantity supplied
- New quantity supplied
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the initial and new price and quantity supplied.
Tips
- Use real (inflation-adjusted) figures to compare across years.
- Check whether data are seasonally adjusted.
- Use the same currency and base year throughout.
- Economic models simplify reality – treat results as illustrations, not forecasts.
Common mistakes to avoid
- Mixing nominal and real values.
- Comparing percentage changes with percentage-point changes.
- Treating correlations as causes.
Inputs explained
| Field | What to enter |
|---|---|
| Initial price | Amount in your currency |
| New price | Amount in your currency |
| Initial quantity supplied | A number |
| New quantity supplied | A number |
What each result means
- Change in quantity (midpoint) = ([New quantity supplied] – [Initial quantity supplied])÷(([New quantity supplied] + [Initial quantity supplied])÷2)×100
- Change in price (midpoint) = ([New price] – [Initial price])÷(([New price] + [Initial price])÷2)×100
- Price elasticity of supply = [Change in quantity (midpoint)]÷[Change in price (midpoint)]
Example values
How the main result changes when Initial price changes and everything else stays at the example values above:
| Initial price | Price elasticity of supply |
|---|---|
| 5 | 0.317 |
| 7.5 | 0.565 |
| 10 | 1.435 |
| 12.5 | -6.391 |
| 15 | -1.174 |
| 20 | -0.522 |
Formula
PES = % change in quantity supplied ÷ % change in priceMidpoint % change = (new − old) ÷ ((new + old) ÷ 2) × 100Worked example
Inputs — Initial price: $10; New price: $12; Initial quantity supplied: 1,000; New quantity supplied: 1,300.
Results — Change in quantity (midpoint) = 26.09 %; Change in price (midpoint) = 18.18 %; Price elasticity of supply = 1.435; Supply is = Elastic.
Frequently asked questions
What is price elasticity of supply?
The responsiveness of quantity supplied to price changes.
What makes supply elastic?
Spare capacity, easy storage and quick production.
Is supply more elastic in the long run?
Yes – firms can expand capacity over time.
What formula does the Price Elasticity of Supply Calculator use?
PES = % change in quantity supplied ÷ % change in price.