ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the responsiveness of quantity demanded to a change in price of the good itself.
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the responsiveness of quantity demanded to a change in price of the good itself, ceteris paribus.
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the responsiveness of quantity supplied to a change in price of the good itself.
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the responsiveness of quantity supplied to a change in the price of good itself, ceteris paribus.
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Detailed explanation-1: -Elasticity of supply measures the degree of responsiveness of quantity supplied to a change in own price of the commodity. It is also defined as the percentage change in quantity supplied divided by percentage change in price.
Detailed explanation-2: -Price elasticity of supply (PES or Es) is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price or cost.
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: -The price elasticity of supply (PES) is the measure of the responsiveness of the quantity supplied of a particular good to a change in price (PES = % Change in QS / % Change in Price).
Detailed explanation-5: -Factors that Influence the PES There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react.