Advertisements
Advertisements
Question
What are the factors governing the elasticity of supply?
Advertisements
Solution
- Nature of the commodity: elasticity of supply of durable goods is high but perishables have a low elasticity of supply.
- Cost of production: Under constant or increasing returns the elasticity of supply is greater, under diminishing returns elasticity is less.
- Technical condition In large-scale production, supply cannot be adjusted easily. So elasticity of supply is lesser and vice versa.
- Time factor: During a very short period, supply cannot be adjusted. In a short period, variable factors can be changed so elasticity is more and in a long period, supply is highly elastic.
APPEARS IN
RELATED QUESTIONS
State the law of supply.
State and explain the law of supply with exceptions.
State with reason whether you agree or disagree with the following statement:
There is a direct relationship between price and quantity supplied.
The relationship between the price of a commodity and the supply of commodity is
Elucidate the Laws of Returns to Scale. Illustrate.
A rightward shift in supply curve shows ______.
Other things remaining unchanged, change in supply due to increase in price is called ______.
Explain the law of supply.
Price and Supply move in the same direction. Justify the statement.
With the help of a diagram state whether supply of a good is directly or inversely related to price?
Which statement best expresses the Law of Supply?
Which of the following is NOT an assumption of the Law of Supply?
What is the relationship between price and quantity supplied described by the Law of Supply?
Which of the following is an exception to the Law of Supply?
Which real-life example best illustrates the Law of Supply?
