ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price. According to basic economic theory, the supply of a good will increase when its price rises. Conversely, the supply of a good will decrease when its price decreases.

Detailed explanation-2: -The price elasticity of supply measures the responsiveness of quantity supplied to changes in price. It is the percentage change in quantity supplied divided by the percentage change in price.

Detailed explanation-3: -Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded-or supplied-divided by the percentage change in price.

Detailed explanation-4: -Price elasticity of supply is said to be elastic when the value is 1.

Detailed explanation-5: -The measure of responsiveness of the demand for a good towards the change in the price of a related good (substitutes and complements) is called cross price elasticity of demand.