price elasticity of supply

Question 1

what is price elastic of supply

Answer 1

measures the responsiveness of quantity supplied to a change in price

Question 2

equation for price elasticity of supply

Answer 2

% change in quantity supplied/% change in price x 100

Question 3

different types of elasticity

Answer 3

• > 1 elastic
  -< 1 inelastic
  -0 perfectly inelastic
  -infinity perfectly elastic
  -1 unit price elastic

Question 4

determinants of price elasticity of supply

Answer 4

-production lag
-stocks
-spare capacity
-substitues of fop
-time