ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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supply elasticity
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supply inelasticity
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supply curve
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supply schedule
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Detailed explanation-1: -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-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. It is usually positive.
Detailed explanation-3: -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.
Detailed explanation-4: -Negative elasticities of supply figures result in an inelastic relationship between quantity supplied and price. This means a change in price has no effect on the change in supply. Positive numbers mean the relationship between price and quantity supplied is elastic.
Detailed explanation-5: -Price elasticity : The degree of responsiveness of quantity demanded to changes in price of commodity is known as price elasticity of demand.