ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is the term for supply of a product that cannot easily or quickly expand or reduce its production? inelastic.

Detailed explanation-2: -Supply whose percentage change is less than a percentage change in price. For example, if the price of a commodity drops twenty-five percent and supply decreases by only two percent, supply is said to be inelastic.

Detailed explanation-3: -An elastic demand or elastic supply is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. An inelastic demand or inelastic supply is one in which elasticity is less than one, indicating low responsiveness to price changes.

Detailed explanation-4: -The elasticity of supply measures a company’s ability to increase or decrease production in response to a price change. It is also referred to as the price elasticity of supply.

Detailed explanation-5: -Perfect Inelastic Supply. Relatively Inelastic Supply. Unit Elastic Supply. Relatively Elastic Supply. Perfectly Elastic Supply.