The price elasticity of supply (PES) when the price is 85 is approximately 1.01. This indicates that the supply is slightly elastic at this price, meaning the quantity supplied is responsive to price changes.

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Follow-up Questions:

1. How does PES change if the price is lower than 85?
2. What is the significance of PES being slightly above 1?
3. How would PES behave if the price was extremely high?
4. What happens to PES as the price approaches the intercept of the supply curve?
5. Can PES ever be negative for a typical supply curve?

Tip:

When PES is greater than 1, supply is considered elastic, meaning producers can increase production relatively easily in response to price changes.