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What factor had the greatest influence on elasticity and in elasticity of supply?
Wiki User
∙ 7y ago
Demand from consumers.
Wiki User
∙ 11y ago
Wiki User
∙ 10y agotime
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What factor has the greatest influence on elasticity and inelasticity of supply?
time
How does the time frame over which a supply decision is made influence the elasticity of supply?
with the age the elasticity of the body and even the vessels and artries also reduces whihch ultimatly create aproblem to the supply as its capacity of uptake of blood is reduces
How is quantity affected by price changes?
supply elasticity
What is the price elasticity of supply for a laptop?
The elasticity of supply establishes a quantitative relationship between the supply of a commodity and it’s price. Hence, we can express the numeral change in supply with the change in the price of a commodity using the concept of elasticity. Note that elasticity can also be calculated with respect to the other determinants of supply. However, the major factor controlling the supply of a commodity is its price. Therefore, we generally talk about the price elasticity of supply. The price elasticity of supply is the ratio of the percentage change in the price to the percentage change in quantity supplied of a commodity. Es= [(Δq/q)×100] ÷ [(Δp/p)×100] = (Δq/q) ÷ (Δp/p) Δq= The change in quantity supplied q= The quantity supplied Δp= The change in price p= The price
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 has the greatest influence on elasticity and inelasticity of supply?
time
What factor has the grestest influence on elasticity and inelasticity of supply?
price of the commodity
How does the time frame over which a supply decision is made influence the elasticity of supply?
with the age the elasticity of the body and even the vessels and artries also reduces whihch ultimatly create aproblem to the supply as its capacity of uptake of blood is reduces
Importance of price elasticity of supply?
There are four main factors that influence supply elasticity. Those factors are the ability to produce other goods; the ability to shut down and cease business; the ability to take advantage of alternative resources; and the amount of time it takes to respond to changes in price.
How is quantity affected by price changes?
supply elasticity
What is the price elasticity of supply for a laptop?
The elasticity of supply establishes a quantitative relationship between the supply of a commodity and it’s price. Hence, we can express the numeral change in supply with the change in the price of a commodity using the concept of elasticity. Note that elasticity can also be calculated with respect to the other determinants of supply. However, the major factor controlling the supply of a commodity is its price. Therefore, we generally talk about the price elasticity of supply. The price elasticity of supply is the ratio of the percentage change in the price to the percentage change in quantity supplied of a commodity. Es= [(Δq/q)×100] ÷ [(Δp/p)×100] = (Δq/q) ÷ (Δp/p) Δq= The change in quantity supplied q= The quantity supplied Δp= The change in price p= The price
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.
Factors that influence the elasticity of supply?
1. Flexibility of inputs 2. Mobility of inputs 3. Availability to produce substitutes 4. Time
What is unitary elasticity supply?
A unitary-elastic supply indicates a good with a supply-price elasticity of one, which means that a 1% change in price increases supply by 1%.
How might you calculate elasticity of supply?
Elasticity of supply is the amount a price changes based on changes in supply. An elastic good's price will change as the price changes. If the good is inelastic, as the supply of the product changes, the price does not change. Inelastic curves are very straight up and down. Elastic curves are straight horizontally. Elasticity of supply is an important factor for business managers. Business managers want to know how the price they offer for their product will change based on how much they produce.
How does quantity supplied of a good with a large elasticity of supply react to price change?
It will be very sensitive to price change. A change in the price will change the quantity supplied by a factor greater than 1. ps: Price elasticity of supply= (% change in quantity supplied)/(% change in price)
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.
