Imagine you're the world's best pizza maker (every teenager's dream, right?). The time it takes to make a fresh pizza from scratch (let's call it our "primary product") is usually more than if you were just heating up a frozen pizza (a "manufactured product"). This difference impacts how much pizza you can supply when more people suddenly want your mouthwatering pizzas (higher demand).

Fun Real-world Example: Imagine a crowd of hungry teenagers coming to your pizzeria after a football match. They all want pizzas right now! If you're making fresh pizzas, it'll take some time - you have to knead the dough, add the toppings, and bake it. On the other hand, if you've pre-made frozen pizzas, you can just pop them in the oven, and voila! More pizzas in less time. So, you can respond quicker to the sudden pizza demand with your "manufactured" frozen pizzas than your "primary" fresh pizzas.

Now, let's dive a bit deeper into our pizza analogy. The PES measures how responsive the quantity supplied of a good is to a change in its price. In general, primary commodities like wheat, oil, or minerals (our fresh pizzas) usually have a lower PES compared to manufactured goods like cars, electronics, or our frozen pizzas

Why so? This is because there are often long time lags in producing primary products - like waiting for wheat to grow or mining minerals. In the same way, you'd need time to make a fresh pizza from scratch. On the other hand, for manufactured goods, once you've set up your production line (or pre-made your frozen pizzas), you can increase your output relatively quickly if the price (and therefore profit) rises.

Calculating PES: PES is calculated as the percentage change in quantity supplied divided by the percentage change in price.