Definitions [4]
Define elasticity of supply.
Price elasticity of supply refers to the degree of responsiveness of supply of a commodity in response to a change in the price of that commodity.
Define a relatively inelastic supply.
Supply of a commodity will be said to be inelastic if the percentage change in quantity supplied is less than the percentage change in price.
Define price elasticity of supply.
Price elasticity of supply refers to the degree of responsiveness of supply of a commodity in response to a change in the price of that commodity.
Define a relatively elastic supply.
Supply of a commodity will be said to be elastic if the percentage change in quantity supplied exceeds the percentage change in price (Es > 1).
Important Questions [6]
- Identify the elasticity of supply (es) of S1, S2 and S3 supply curves:
- Identify the elasticity of supply for the following with proper reasoning: Primitive and advanced technology.
- Identify the elasticity of supply for the following with proper reasoning: Short run and long run period.
- Identify the elasticity of supply for the following with proper reasoning: Perishable and durable goods.
- Identify the elasticity of supply for the following with proper reasoning: Nature of the entrepreneurs.
- What is meant by elasticity of supply?
