Slides in this set

Slide 1

Preview of page 1

Price Elasticity of Supply
By Nicole Moyo…read more

Slide 2

Preview of page 2

What is it ?
· As elasticity is a measure of sensitivity, its use is
not just confined to influences on demand but
can also be useful to in evaluating the sensitivity
of quantity supplied to a change in a determinant
of such a price.
· The Formula :
% QS The measure of sensitivity of quantity supplied to a change in price of good/service
% P…read more

Slide 3

Preview of page 3

· Elastic >1
· 0-1 = Inelastic
· 1= 10% increase in price induces
a 10% increase in quantity
supplied. UNIT ELASTICITY.…read more

Slide 4

Preview of page 4

· Availability of Substitues
· Time…read more


No comments have yet been made

Similar Economics resources:

See all Economics resources »