ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Detailed explanation-2: -Unitary elasticity of supply refers to a situation when the percentage change in quantity supplied of a commodity is exactly equal to the percentage change in its price.

Detailed explanation-3: -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-4: -Supply is elastic if there are large changes in supply for a small change in price. If the percentage change in price is equal, though opposite, to the percentage change in quantity, then supply elasticity is unit elastic.

Detailed explanation-5: -(ii) Inelastic or less than unit elastic supply (es < 1) When the percentage change in quantity supplied of a commodity is less than the percentage change in its price, the supply of the commodity is said to be inelastic or less than unit elastic.