ekastucuty of supply

Question 1

What is elasticity of supply?

Answer 1

It measures how much quantity supplied responds to price changes.

Question 2

What is the formula for PES?

Answer 2

PES = % Change in Quantity Supplied / % Change in Price

Question 3

What does elastic supply mean?

Answer 3

Small price change leads to large quantity supplied change (PES > 1).

Question 4

What does inelastic supply mean?

Answer 4

Price change has little effect on quantity supplied (PES < 1).

Question 5

What is unitary elasticity of supply?

Answer 5

Price and quantity supplied change in proportion (PES = 1).

Question 6

What factors affect elasticity of supply?

Answer 6

Time period, production flexibility, and availability of inputs.

Question 7

What is perfectly elastic supply?

Answer 7

Any price decrease leads to zero quantity supplied (PES = ∞).

Question 8

What is perfectly inelastic supply?

Answer 8

Quantity supplied doesn’t change with price (PES = 0).

Question 9

How does elasticity of supply affect total revenue?

Answer 9

Elastic supply: increase in price → increase in supply. Inelastic supply: supply doesn’t change much.

Question 10

What is the difference between elasticity of demand and supply?

Answer 10

Demand elasticity measures consumer response, while supply elasticity measures producer response.

Question 11

What is the formula for Elasticity of Supply

Answer 11

%ChangeinQuantitySupplied/% change in price