ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Know that time has the greatest influence on elasticity and inelasticity of supply. Know what is a fixed cost for a store. Increased government regulations cause the supply curve to shift to the right.

Detailed explanation-2: -There are numerous factors that directly impact the elasticity of supply for a good including stock, time period, availability of substitutes, and spare capacity. The state of these factors for a particular good will determine if the price elasticity of supply is elastic or inelastic in regards to a change in price.

Detailed explanation-3: -The four factors that affect price elasticity of demand are (1) availability of substitutes, (2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and (4) how much time has elapsed since the time the price changed.

Detailed explanation-4: -Price. Price can be understood as what the consumer is willing to pay to receive a good or service. This is the main factor that influences the supply of a product. In the law of supply, when the price of a product goes up, the supply of the product also increases and vice versa.