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Elasticity of supply refers to the responsiveness of guantity supplied of a commodity to changes in its own price. And the formulafor measuring elasticity of supply percentagechange in quantity supplied/ %change in price
Wiki User
∙ 15y ago
Wiki User
∙ 12y agoThe price elasticity of demand and price elasticity of supply refer to the relationship between the rate of change of price and demand or supply. Elasticity is a unit expressed in percentage change - that is, when price changes by 1%, demand (or supply) changes by x%. When the change in demand or supply is
x = 0, then the good is said to be perfectly inelastic.
0 < x < 1, then the good is said to be price inelastic.
x = 1, then the good is said to be unit elastic.
1 < x < infinity, then the good is said to be price elastic.
x = infinity, then the good is said to be perfectly elastic.
Wiki User
∙ 11y agoElasticity of demand measures how consumers react to a change in price, while elasticity of supply measures how firms will react to change in price
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Why study elasticity of demand and supply?
We have to study the elasticity of demand and supply so that we can know what we want to know.
What factor had the greatest influence on elasticity and in elasticity of supply?
Demand from consumers.
Elasticity of Demand and Supply with graph?
buang ka
What is price elasticity?
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
What happens to the price if supply increases?
If the cost of supply falls for each unit of supply (a shift of the supply curve right), the change in price depends on the price elasticity of demand: Price is unchanged when price elasticity of demand is infinite. Price falls when price elasticity of demand is less than infinite.
Why study elasticity of demand and supply?
We have to study the elasticity of demand and supply so that we can know what we want to know.
Elasticity as applied to demand and supply?
Do not answer this...hahah
What factor had the greatest influence on elasticity and in elasticity of supply?
Demand from consumers.
Elasticity of Demand and Supply with graph?
buang ka
What is price elasticity?
price elasticity is the degree of responsiveness of demand or supply to a small change in price.
What happens to the price if supply increases?
If the cost of supply falls for each unit of supply (a shift of the supply curve right), the change in price depends on the price elasticity of demand: Price is unchanged when price elasticity of demand is infinite. Price falls when price elasticity of demand is less than infinite.
Point elasticity of supply?
The point elasticity of supply is a measure of the rate of response of quantity demand due to a price change. The higher the elasticity, the more sensitive the sellers are to these changes.
What is the degree to which the supply or demand of something responds to changes in price?
Elasticity.
What factors affect elastic of demand?
There are plenty of factors affecting elasticity of demand including climate of the area. Other factors that effect elasticity of demand include supply and group of people buying.
What is price elasticity of demand and supply on gourmet coffee?
It's around 3.5!
What is the elasticity of labor?
The rate at which any change in labor effects demand of labor or supply.
What are the 3 types of elasticity?
1)price elasticity of demand 2)income elasticity of demand 3)cross elasticity of demand
