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A product with inelastic supply would be one where the producers will be willing to sell about the same amount, no matter whether the price goes up or down. Seats on an airplane that is just about to leave is a good example. I have flown to Europe paying about ten percent of the list price of a ticket, just by standing at the gate and then making that offer just before time to leave. It didn't much matter how much you offer because once the plane leaves they have lost the chance to sell. Beds at a hotel around midnight are similar. A product with elastic supply is one where the price you offer will have a strong impact on whether the seller will sell. In the short term, to any particular buyer, the price of a commodity is a good example. When rice is selling for $200 per ton, if you offer the broker $100 he will tell you to get lost. In the long term commodities will show elasticity. If the demand for rice falls, farmers will plant less and there will be less available next year.
What else can I help you with?
Is supply for bar soap inelastic or elastic?
is soap elastic or inelastic supply
What are the types of supply elasticity?
Types of elasticity of supply1) Perfectly elastic supply2) Relative elastic supply3) Unitary elastic supply4) Relatively in elastic supply5) Perfectly in elastic supply
Which firm is more likely to have an elastic supply?
A firm making underwear will need a supply of elastic.
What is an unitary elastic 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%.
Will the supply of a good be more elastic if the price of the good increases?
Yes, the supply of a good will be more elastic if the price of the good increases.
Is supply for bar soap inelastic or elastic?
is soap elastic or inelastic supply
What are the types of supply elasticity?
Types of elasticity of supply1) Perfectly elastic supply2) Relative elastic supply3) Unitary elastic supply4) Relatively in elastic supply5) Perfectly in elastic supply
Which firm is more likely to have an elastic supply?
A firm making underwear will need a supply of elastic.
What is an unitary elastic 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%.
Will the supply of a good be more elastic if the price of the good increases?
Yes, the supply of a good will be more elastic if the price of the good increases.
What is the definition of perfectly elastic supply?
The definition of perfectly elastic supply is a supply that can change along with the demand. This means if paper for example is not demanded in large quantities and then all of the sudden is there will be enough paper to supply the demand.
What are unitary elastic products?
unitary elastic products are those with a supply and demand slope=1.
Why is world supply curve horizontal?
The world supply curve is considered perfectly elastic.
What happen in the supply and demand regarding land?
Supply is inelastic and demand is elastic for land.
How does a highly elastic supply respond when demand shifts to the left?
When demand shifts to the left, a highly elastic supply will respond by decreasing its quantity supplied significantly in response to a small decrease in demand. This is because the supply is very responsive to changes in demand, leading to a larger decrease in quantity supplied compared to a less elastic supply.
When does supply curve look like a demand curve?
When supply and demand are perfectly elastic/inelastic
When is the deadweight loss the greatest?
when both demand and supply are elastic
