Advertisements
Advertisements
Question
Why does the measure of price elasticity of supply of a good carry plus sign?
Advertisements
Solution
The measure of price elasticity of supply of a good carries plus sign because of positive (direct) relation between price and supply of the good.
APPEARS IN
RELATED QUESTIONS
Draw a perfectly inelastic supply curve.
Draw a perfectly elastic supply curve.
Identify the elasticity of supply (es) of S1, S2 and S3 supply curves:
Identify the elasticity of supply for the following with proper reasoning:
Nature of the entrepreneurs.
What is the degree of elasticity of supply in the diagram?
Choose the correct term for the given definition.
The ratio between the percentage change in supply to a percentage change in price.
When an entrepreneur introduces a new technique or a new product, it is called ______.
Pick the option which does not belong to the group.
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 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:
Define elasticity of supply.
The coefficient of elasticity of a commodity is 0.4. What percentage change in supply will take place if its price rises 20%?
Cotton and cotton seeds are examples of ______ supply.
Explain any four determinants of elasticity of supply.
Give the meaning of perfectly inelastic supply.
What is meant by elasticity of supply?
What do you mean by elastic supply?
What do you mean by perfectly inelastic supply?
Price elasticity of supply of a good is 0.8. Is the supply 'elastic' or 'inelastic', and why?
