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6. What does it mean if PES= more than 1?
- unit elastic
- elastic
- inelastic
7. What does it mean if PES= less than 1?
- inelastic
- elastic
- unit elastic
8. What does it mean if PES=1?
- unit elastic
- perfectly inelastic
9. What does it mean if PES=0?
- perfectly inelastic
- unit elastic
10. What does a bigger level of spare capicity mean for PES?
- it is more elastic
- it is less elastic
11. What does it mean if a firm has a small stock pile for PES?
- perfectly inelastic
- it is less elastic
12. What does it mean if the firm has non perishable goods for PES?
13. What does it mean for PES if there are lots of entry barriers ?
14. Is it true that in the short run PES will be inelastic BUT in the long run PES will be elastic?