# Economics

Kcse Online is your one stop website for Educational Resources Made for Students and Teachers by the Teachers. Browse the Categories to see what you get.

Economics

A definition and the formula

Again, the key word is responsiveness, but this time we need to find out how responsive supply is to a given price change (rather than demand)

Unsurprisingly, the formula used is very similar to the others in structure: Where: Es The price elasticity of supply ? 'change in' Qs Quantity supplied P Price

Using the formula

I do not want to dwell on this for two reasons. First, there are far fewer questions in examinations focused on the price elasticity of supply. Examiners prefer demand, where one can analyse the affects on the revenues on the firm in question (see the Learn-It on the 'Price elasticity of demand')

Secondly, the way in which one uses this formula is exactly the same as the way in which one uses the formula for the price elasticity of demand. Try the following examples to check that you agree with me. Click on the appropriate button to reveal the answers. The market price for apples rises from 50p per lb to 55p per lb. A greengrocer would like to increase his supply of apples at this higher price from 40lbs a day to 50lbs a day. What is the price elasticity of supply (ceteris paribus)? The market price for Brand X lager rises from £2 a pint to £2.10 a pint. The price elasticity of supply for Brand X is 1.6. A publican would like to change his supply of Brand X in response to this price change. He currently supplies 300 pints a day. What will he supply following the price change (ceteris paribus)? Notice that the elasticities are positive. Supply curves tend to be upward sloping, so the relationship between price and quantity supplied is nearly always positive. Hence the value of the elasticity is nearly always positive. The only exceptions are zero and infinity. Zero is not strictly positive, but it isn't negative either

## Past Exam Papers for KCPE and KCSE

We have an enourmous data quiz bank of past papers ranging from 1995 - 2017 .

### Quick Revision Booklets

Candidates who would want their papers remarked should request for the same within a month after release of the results. Those who will miss out on their results are advised to check with their respective school heads and not with the examination council. .

Candidate benefit from our quick revision booklets which are comprehensive and how to tackle examination question methods.

#### e-Content Digital Multimedia

As a supplementary to coursework content our e-library for digitized multimedia CDs while enhance and ensure that you never missed that important concept during the normal class lessons. It is a Do it Yourself Project

##### Other Goodies for KCSE ONLINE Members!

Buy 1 Coursework DVD Disc and get a FREE Gold membership plan for two consecutive years. This e-Content Digital CD covers all the topics for a particular class per year. One CDs costs 1200/- ( Per Subject per Class ).

Purchase Online and have the CD sent to your nearest Parcel Service. Pay the amount to Patrick 0721806317 by M-PESA then provide your address for delivery of the Parcel. Ask for clarification if in doubt.

###### Install ADOBE Flash Player for Best Results

For Best results INSTALL Adobe Flash Player Version 16 to play the interactive content in your computer. Test the link below to find out if you have Adobe Flash in your computer.