1. **Stating the problem:** We want to calculate the price elasticity of supply, which measures how much the quantity supplied of a good changes in response to a change in its price. 2. **Formula for price elasticity of supply:** $$e_s = \frac{\text{percentage change in quantity supplied}}{\text{percentage change in price}}$$ 3. **Using the graph and given formula:** From the graph and explanation, the elasticity can be expressed as: $$e_s = \frac{AE}{BE}$$ where $AE$ is the vertical segment representing price change and $BE$ is the horizontal segment representing quantity change. 4. **Example:** Suppose the price increases from point $B$ to $E$ by $AE = 4$ units and the quantity supplied increases from $B$ to $E$ by $BE = 2$ units. 5. **Calculate elasticity:** $$e_s = \frac{AE}{BE} = \frac{4}{2} = 2$$ 6. **Interpretation:** An elasticity of 2 means that for every 1% increase in price, the quantity supplied increases by 2%. This indicates a relatively elastic supply. This example shows how to use the graph segments to find the price elasticity of supply easily.