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Why is the slope of supply an unsatisfactory measure of the responsiveness in the quantity supplied of a commodity to a change in its price?
Wiki User
∙ 13y ago
why is the slope of supply an unsatifactory measure of the responsiveness in quantity supplied of a commodity to a change in its price
Wiki User
∙ 13y ago
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What causes an increase in the quantity supplied?
when the price of the commodity increases
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
A demand schedule shows the relationship between the quantity demanded of a commodity over a given peiord of time and?
quantity supplied
What is supply function?
Indicates the relationship between the quantity of thecommodity supplied and the unit price of the commodity
What is price determinant?
The price determinates are the factors that will determine the price of a particular commodity, These factors are quantity supplied, quantity demanded and the cost of production.
What causes an increase in the quantity supplied?
when the price of the commodity increases
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
A demand schedule shows the relationship between the quantity demanded of a commodity over a given peiord of time and?
quantity supplied
What is supply function?
Indicates the relationship between the quantity of thecommodity supplied and the unit price of the commodity
What is price determinant?
The price determinates are the factors that will determine the price of a particular commodity, These factors are quantity supplied, quantity demanded and the cost of production.
What determine price?
The price determinates are the factors that will determine the price of a particular commodity, These factors are quantity supplied, quantity demanded and the cost of production.
The supply curve shows the relationship between?
Supply curve shows relationship between price of the particular commodity and the quantity supplied of that commodity at different price level.
What statement refers to the law of supply?
Law of supply states that other factors remaining constant, supply is the function of its price where an increase in price of the commodity increases quantity supplied in the the market and a decrease in price reduces quantity supplied.
What happens to the price when the quantity supplied is greater than the quantity demanded?
When quantity supplied is more than quantity demanded price falls, upto the point at which some suppliers decide they would rather not sell the product at that low price. If the supply quantity is still more (after the above mentioned supplies have been taken out of the market) than quantity demanded, then price continues to fall upto the level where he next supplier takes supplies out of the market. Also to be noted is that, when price falls, demand increases. This continues to happen until, the quantity supplied equals demand. This method generally works for most commodities, because the suppliers could store the commodity for future use. Also the general assumption is at a price of $ 0, the demand is infinite. But depending of the commodity there could be other effects, especially price floors due to substitute uses for the commodity etc.
A change in quantity supplied is the result of what?
a change in quantity supplied is the result of
An increase in quantity supplied represented by?
An increase in quantity supplied is represented by demand.
How do you use quantity supplied in a sentence?
The quantity supplied the house for forty years.
