Advertisements
Advertisements
Question
When is the supply of a commodity is called elastic?
Advertisements
Solution
If the percentage change in supply of a good is greater than the percentage change in the price then the supply of the good is said to be elastic. (Es > 1)
RELATED QUESTIONS
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es = ∞
Define a relatively elastic supply.
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
What is the formula for percentage method of calculating price elasticity of supply?
Explain any three factors affecting elasticity of supply.
Which of the following measures of price elasticity shows elasticity shows elastic supply?
The given diagram is a case of ______ supply.
Elasticity of supply is measured by:
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 ______.
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I:
| 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:
Assertion (A): In case of perfectly inelastic supply, supply curve is a vertical straight line supply curve.
Reason (R): Supply does not change with change in price in case of Es = 0.
Define elasticity of supply.
Which of the following measures of price elasticity shows inelastic supply?
Price of a product increases by 2%. As a result, its supply rises by 4%. What is elasticity of supply of the commodity?
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
With the help of a formula calculate the elasticity of supply from the following table:
| Price | Quantity supplied |
| 10 | 200 |
| 15 | 225 |
The quantity of a commodity supplied increases by 25% when its price rises by 10%. Calculate price elasticity of supply.
When there is no change in price, but quality supplied changes, it implies a situation of ______.
Draw the supply curve showing price elasticity of supply greater than one.
Draw the supply curve showing price elasticity of supply less than one.
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?
Price elasticity of supply of a good is 0.8. Is the supply 'elastic' or 'inelastic', and why?
Define a relatively inelastic supply.
Draw relatively inelastic supply.
