Unit 2.8 - Paper 2 Exam Practice QuestionsAnswers(a) Define the term price elasticity of supply (PES). [2]PES refers to the degree of responsiveness of the quantity supplied of a product or service to a change in its price [1]. It is measured by dividing the percentage change in the quantity supplied by the given percentage change in price [1].(b) State two reasons why understanding price elasticity of supply is important...