Price elasticity of supply (PES) measures the responsiveness of quantity supplied to changes in price. It quantifies the percentage change in quantity supplied resulting from a 1% change in price. PES helps in understanding the sensitivity of producers to price changes and the ability to adjust production levels. Elastic supply indicates a relatively large change in quantity supplied in response to price changes, indicating that producers can quickly adjust production. Inelastic supply indicates a relatively small change in quantity supplied, indicating that producers are less responsive to price changes. PES is influenced by factors such as production capacity, availability of inputs, time, and technology. Understanding PES helps in supply chain management, production planning, and market analysis.