The way to calculate price elasticity is to divide the change in demand (or supply) by the change in price
PRICE ELASTICITY - If the cost of "World's Greatest Boss" mugs decreases by 10% while the supply decreases by 5%, the PES is.5, and the market is said to be inelastic. The price elasticity of supply (PES) for bobbleheads is 1.3 if the price increases by 15% and the supply increase by 20%.
If the value is one, your product is unit elastic, meaning that changes in price correspond to changes in either supply or demand.
A score larger than one indicates that your product is elastic and that changes in price will result in changes in supply or demand that are not proportional to those changes.
A number of 1 indicates that your product is inelastic, meaning that changes in price will only cause a modest change in either supply or demand.
To learn more about Price elasticity please refer to -https://brainly.com/question/20630691
#SPJ4
