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प्रश्न
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es > 1
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उत्तर
When the percentage change in quantity supplied is greater than the percentage change in price, then supply for such a commodity is said to be highly elastic. In such a case, Es > 1, and the straight line supply curve originates from the Y-axis, as shown in the following diagram.
संबंधित प्रश्न
Explain briefly the impact of the cost of production on the elasticity of supply.
Draw a perfectly elastic supply curve.
Identify the elasticity of supply for the following with proper reasoning:
Perishable and durable goods.
What is the degree of elasticity of supply in the diagram?
Which of the following measures of price elasticity shows elasticity shows elastic supply?
Pick the option which does not belong to the group.
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column:
| Column I | Column II |
| A. Perfectly Inelastic | (i) Es > 1 |
| B. Perfectly Elastic | (ii) Es < 1 |
| C. Inelastic | (iii) Es = 0 |
| D. Highly Elastic | (iv) Es = infinity |
Choose the correct alternative:
If the price of a commodity increases by 50% and its supply increases by 25% then calculate the price elasticity of supply following the percentage method. Identify the degree of price elasticity.
Explain any four determinants of elasticity of supply.
Give the meaning of perfectly inelastic supply.
