--%>
Assignment Help - homework help

Types of elasticity of supply

Types of elasticity of supply:

There are five kinds of elasticity of supply:

1. Perfectly elastic supply:

The coefficient of elasticity of supply is infinity. (i.e., es is ∞). For a little change or no alter in price, there will be an infinite amount of supply. (SS1 shown in figure below)

2. Relatively elastic supply:

The coefficient of elastic supply is always greater than 1(i.e., es > 1). Quantity supplied modifications by a bigger percentage than price. (SS2 shown in figure below)

3. Unitary elastic supply:

The coefficient of elastic supply is equivalent to 1 (i.e., es = 1). A change in cost will cause a proportionate modifications in quantity supplied. (SS3 shown in figure below)

4. Relatively inelastic supply:

The coefficient of elasticity is less than 1 (i.e., es < 1). Quantity supplied modifications by a lesser percentage than price. (SS4 shown in figure below)

5. Perfectly inelastic supply:

The coefficient of elasticity is equivalent to zero (i.e., es = 0).

The change in price will not bring around any modification in quantity supplied. (SS5 shown in figure below).

2214_types odf supply.jpg

   Related Questions in Microeconomics

  • Q : Describe economic perspective The

    The economic perspective refer as: 1) macroeconomic phenomena, but not microeconomic phenomena. 2) microeconomic phenomena, but not macroeconomic phenomena. 3) the making of purposeful decisions in a context of marginal costs and marginal benefits. 4) unlimited resour

    		•
  • Q : Socially optimal output in perfectly

    Assume that no externalities in production or consumption exist and the income distribution is universally viewed such as “fair.” When this firm could price discriminate perfectly, one condition for socially optimal output would be for: (i

    		•
  • Q : Income elasticity of demand The income

    The income elasticity of demand for mass transit of 0.6 signifies that the demand for mass transit: (1) Is a requirement. (2) Is a luxury. (3) Will increase at a slower rate than income. (4) Will drop/fall when personal incomes increases average.

    		•
  • Q : Determine prices by maximize total

    LoCalLoCarbo that is Favorite Corporation of fad dieters, which can maximize its total revenue when this produces: (1) output q2 and charges a price equal to P1. (2) output q3 and charges a price of more than P2 althou

    		•
  • Q : Define break-even price Break-even

    Break-even price: This is the price at which firms form zero normal profit.

    		•
  • Q : Problem on Jurisdictional Strikes The

    The Taft-Hartley Act prohibited strikes against the firm over the issue of which of two or more competing unions would symbolize the firm’s employees. These strikes are termed as: (i) Jurisdictional strikes. (ii) Strategic representation strikes

    		•
  • Q : Contribution standard of income

    The contribution standard of income distribution: (w) sets the least efficient incentives for production. (x) is the distribution standard most compatible along with pure capitalism. (y) minimizes individual economic freedom. (z) is very complimented

    		•
  • Q : Marginal and average revenue-market form

    In which market form is the marginal and average revenue of a firm always equivalent? Answer: Average and marginal revenue of a firm are for all time equivalents beneath perfect competition.

    		•
  • Q : Slope of indifference Curve State the

    State the slope of indifference Curve? Answer: Slope of indifference curve is equivalent to MRS, that is, Marginal Rate of Substitution.

    		•
  • Q : Equilibrium quantity and price

    Elucidate the consequence of an increase in demand of a commodity on its equilibrium quantity and price? Answer: Increase in demand causes a rightward shift in the

    		•