Advertisements
Advertisements
Question
Identify the elasticity of supply for the following with proper reasoning:
Nature of the entrepreneurs.
Advertisements
Solution
Entrepreneurs who take risks and innovate are more likely to adapt swiftly to price fluctuations, resulting in more elastic supply. Companies may invest in new methods or technology to expand production quickly in reaction to price fluctuations. Entrepreneurs who avoid risk and prefer old methods are less likely to adapt production in reaction to price changes, resulting in inelastic supply.
APPEARS IN
RELATED QUESTIONS
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es = ∞
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
Explain any three factors affecting elasticity of supply.
Identify the value of elasticity of supply for the supply curve OS and S1S2.
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?
If price elasticity of supply is greater than 1, then supply is said be elastic.
The given diagram is a case of ______ supply.
Which of the following statements are true?
The cost of production will increase if
- The government gives subsidies
- The firm uses obsolete technology
- The price of diesel increases
When an entrepreneur introduces a new technique or a new product, it is called ______.
When the percentage change in the quantity supplied of a commodity is exactly equal to the percentage change in its price it is known as ______.
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:
Draw a straight line supply showing elasticity greater than one.
Price of a product increases by 2%. As a result, its supply rises by 4%. What is elasticity of supply of the commodity?
Cotton and cotton seeds are examples of ______ supply.
Draw and briefly explain a perfectly elastic supply curve.
Explain any four determinants of elasticity of supply.
Indicate the degree of elasticity on the supply curve given below:
Why does the measure of pnce elasticity of supply of a good carry plus sign?
