Enter the total change in quantity shipped and the change in price into the calculator. The calculator will evaluate a display the price elasticity of supply.

## Price Elasticity of Supply Formula

The following equation can be used to calculate the price elasticity of supply.

Price Elasticity of Supply = % Change in Quantity Supplied / % Change in Price

## Price Elasticity of Supply Definition

Price elasticity of supply is how a change in supply is affected by a change in price. Most often it’s used to analyze how much of a product to produce based on the previous history of supply and prices.

## Price Elasticity of Supply Example

How to calculate price elasticity of supply?

1. First, determine the change in quantity shipped.

Calculate the total change in percentage of the number of goods shipped.

2. Next, determine the change in price.

Calculate the change in price that was associated with the change in shipped goods.

3. Finally, calculate the price elasticity of supply.

Calculate the price elasticity of supply using the equation above.

## FAQ

What is price elasticity of supply?

Price elasticity of supply measures the change in supply that occurs with a change in the price of a product.