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Supply of a good is elastic when a small increase in price leads to a large increase in quantity supplied.
A sociologist would explain this phenomena this way: This occurs because the good is easy to make - no complicated processes, small start-up capital, no need for skilled labour, rare-metals, anybody can do it! Thus, when the price increases by a little, many more new producers find that they can now produce the good (because now they are willing to accept the price on the market).
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Is supply for bar soap inelastic or elastic?
is soap elastic or inelastic supply
A product for which quantity changes very little when prices go up or down is said to be supply?
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%.
Is supply for bar soap inelastic or elastic?
is soap elastic or inelastic supply
A product for which quantity changes very little when prices go up or down is said to be supply?
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%.
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.
What happen in the supply and demand regarding land?
Supply is inelastic and demand is elastic for land.
Why is world supply curve horizontal?
The world supply curve is considered perfectly elastic.
When does supply curve look like a demand curve?
When supply and demand are perfectly elastic/inelastic
How is elasticity of supply related to elasticity of demand?
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
When is the deadweight loss the greatest?
when both demand and supply are elastic
