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Highly elastic supply refers to a situation where the quantity supplied of a good or service responds significantly to changes in its price. When the price increases, producers can quickly increase production, and conversely, a price decrease leads to a sharp reduction in supply. This characteristic is often seen in markets where producers can easily adjust their output, such as in industries with low production costs or where resources can be readily reallocated. As a result, even small price fluctuations can lead to large changes in the quantity supplied.
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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.
Is supply for bar soap inelastic or elastic?
is soap elastic or inelastic supply
Demand for wine is elastic or inelastic?
Highly elastic.
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.
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.
Is supply for bar soap inelastic or elastic?
is soap elastic or inelastic supply
Demand for wine is elastic or inelastic?
Highly elastic.
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%.
If the supply of a good is elastic what statement is true?
If the supply of a good is elastic, it means that producers can respond quickly to changes in price. Specifically, a small increase in price will lead to a proportionally larger increase in the quantity supplied. This typically occurs in markets where production can be easily scaled up or down, such as in industries with readily available resources or flexible manufacturing processes. Consequently, elastic supply indicates that suppliers are highly responsive to market conditions.
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.
