Advertisements
Advertisements
Question
Define a relatively elastic supply.
Advertisements
Solution
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).
APPEARS IN
RELATED QUESTIONS
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es = ∞
What is the formula for percentage method of calculating price elasticity of supply?
If price elasticity of supply is greater than 1, then supply is said be elastic.
When the price increases by 50% and the supply increases only by 5% the price elasticity of supply of that commodity will be ______.
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:
Which of the following measures of price elasticity shows inelastic supply?
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
Draw and briefly explain a perfectly elastic supply curve.
Draw the supply curve showing price elasticity of supply greater than one.
Using graphs, explain any four types of elasticity of supply.
