BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Relatively Greater-Elastic Supply
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Relatively Less-Elastic Supply
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Perfectly Inelastic Supply
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Perfectly Elastic Supply
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Detailed explanation-1: -When the change in supply is relatively less when compared to the change in price, we say that the commodity has a relatively-less elastic supply. In such a case, the price elasticity of supply assumes a value less than 1.
Detailed explanation-2: -Less than Unit Elastic Supply: When the change in the supply of a commodity is lesser as compared to the change in its price, we can say that it has a relatively less elastic supply. In such a case, the price elasticity of supply is less than 1.
Detailed explanation-3: -Supply is price elastic when the percentage change in quantity supplied is greater than the percentage change in price, and supply is price inelastic when the percentage change in quantity supplied is less than the percentage change in price. Was this answer helpful?
Detailed explanation-4: -The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
Detailed explanation-5: -Overall, price elasticity measures how much the supply or demand of a product changes based on a given change in price. Elastic means the product is considered sensitive to price changes. Inelastic means the product is not sensitive to price movements.