Question

Distinguish between the following:

Relatively Elastic Supply and Relatively Inelastic Supply

Answer 1

Relatively Elastic Supply	Relatively Inelastic Supply
In this case, change in price leads to a proportionately large change in the quantity supplied.	In this case, change in price leads to a proportionately minor change in the quantity supplied.
It represents a flatter supply curve.	It represents a steeper supply curve.
Here, Ed> 1	Here, Ed< 1