--%>
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 : NO profit-maximizing firm in long run

    In the long run no profit-maximizing firm would produce yet a level of output at that: (w) marginal revenue is below the price charged consumers. (x) demand is relatively price inelastic. (y) total revenue would exceed total variable costs but not tot

    		•
  • Q : Depending LEAST interest rate Into the

    Into the long run, interest rates depend LEAST upon the: (1) premiums needed to induce savers to delay consumption. (2) premiums necessary to induce wealth holders to sacrifice liquidity. (3) productivity of new capital. (4) demands and supplies of lo

    		•
  • Q : Calculate of total variable in an area

    Total variable costs can be estimate as: (1) 0bcq1. (2) 0adq2. (3) 0Peq2. (4) aPed. (5) Cannot be measured within demonstrated figure.

    Q : Market Power and Demand for Labor All

    All of the given might causes labor markets to be non-competitive except: (i) Backward bending labor supply curves. (ii) Unions and employer trade associations. (iii) Monopolistic power exercised by the firm. (iv) Monopsonistic power exercised by the

    		•
  • Q : Present Value of Future Income The

    The interest rate ____ as well as the present value of future income ____ when the preference for current income over the future income weakens. (w) falls; rises. (x) rises; falls. (y) falls; falls. (z) rises; rises.

    Q : Calculations of price elasticity of

    At a price of $50, the demand for DVD games is roughly: (w) perfectly elastic. (x) perfectly inelastic. (y) unitarily elastic. (z) relatively inelastic.

    Q : Determine market demand in curve The

    The market demand curve as in demonstrated figure for Christmas trees is: (i) curve A. (ii) curve E. (iii) curve F. (iv) curve G. (v) curve J.

    Q : In-Kind Transfer Payments Medicare,

    Medicare, rent subsidies, Medicaid, and food stamps are examples of: (w) transfers in-kind. (x) cash transfers. (y) human capital programs. (z) negative income taxes. Can anybody suggest me the proper explanation for given problem

    		•
  • Q : Illustrations of monopoly power The

    The best illustrations of monopoly power in the United States are possibly: (w) local public utility companies. (x) state university systems. (y) the national TV networks. (z) national defense firms. Hey friends pl

    		•
  • Q : Reduction in demand of Complementary

    Mold that damaged the hamburger crop following a flood would be most probable to decrease the demands for: (i) fried chicken with gravy and mashed potatoes. (ii) Soda pop and bottled water. (iii) Carrots, cucumbers and egg plant. (iv) Ketchup and mustard. (v) Sushi an

    		•