Hey there, young economist! Today, we're diving into the exciting world of Price Elasticity of Supply (PES). It's like a rollercoaster ride that measures how suppliers react when the price of a product goes up or down. Buckle up, and let's explore this concept in a fun and easy way!

Price Elasticity of Supply (PES) is a cool concept that helps us understand how much the quantity of a product changes when its price changes. It's like gauging how suppliers dance to the rhythm of price movements.

Calculating PES: To figure out PES, we use a special formula:

PES = (Percentage Change in Quantity Supplied) / (Percentage Change in Price

But before we dive into PES, let's talk about the Law of Supply. Imagine you're a pizza seller, and when the price of pizza goes up, you're more motivated to supply more pizzas because you'll make more money! On the flip side, if the price of pizza drops, you might not be so eager to sell as many pizzas. That's what the Law of Supply is all about - price and quantity supplied move in the same direction.

Remember, the Law of Supply tells us that when prices increase, the quantity supplied also increases. When prices decrease, the quantity supplied goes down too. It's like a dance where both price and quantity move in harmony!