At a price of ₦500 per unit, a seller supplies 1,000 units of a commodity. When the price rises to ₦600 per unit, supply increases to 1,300 units. What is the price elasticity of supply?

PES = (% change in quantity supplied) ÷ (% change in price). % change in quantity supplied = (300/1000) × 100 = 30%. % change in price = (100/500) × 100 = 20%. PES = 30% ÷ 20% = 1.5. Since PES > 1, supply is elastic, meaning producers are relatively responsive to the price increase.