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
Draw a perfectly elastic supply curve.
Define a relatively elastic supply.
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
Identify the degree of elasticity of supply from the following graph:
What is the degree of elasticity of supply in the diagram?
Which of the following measures of price elasticity shows elasticity shows elastic supply?
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 ______.
A linear supply curve starting from the origin making an angle of 75 degree with X-axis will have ______.
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
The quantity of a commodity supplied increases by 25% when its price rises by 10%. Calculate price elasticity of supply.
Cotton and cotton seeds are examples of ______ supply.
Draw and briefly explain a perfectly inelastic supply curve.
Give the meaning of perfectly inelastic supply.
Define price elasticity of supply.
What is meant by elasticity of supply?
Using graphs, explain any four types of elasticity of supply.
If the price of a commodity falls by 10% and consequently, the quantity supplied decreases by 20%, what will be its elasticity of supply?
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es > 1
