Understanding Price Elasticity of Supply

This interactive lesson explores how the Price Elasticity of Supply (PES) changes along a supply curve. The lesson uses the percentage change formula shown below to calculate elasticity.

Price Elasticity of Supply = Percentage Change in Quantity Supplied ÷ Percentage Change in Price

You can adjust the intercept of the supply curve and observe how elasticity changes at different points. The lesson uses the percentage formula, where Point A represents the old (initial) point and Point B represents the new point. Move the points or adjust the intercept to see how price, quantity supplied, percentage changes, and elasticity update in real time.

How to Use the Playground

• Drag Point A and Point B along the supply curve.
• Adjust the intercept of the supply curve to shift the supply curve.
• Observe how the Price Elasticity of Supply changes in real time.
• Compare elasticity at different locations and for different supply curve intercepts.