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Flashcards in Elasticity of supply Deck (4)
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1
Q

Elastic supply

A

Where the coefficient of price elasticity of supply is greater than +1.

2
Q

Elasticity of supply

A

Price elasticity of supply measures the relationship between change in quantity supplied and a change in market price.

3
Q

Inelastic supply

A

When the coefficient of price elasticity of supply is less than +1. (Pes<1)

4
Q

Price elasticity of supply

A

Price elasticity of supply (PES) measures the relationship between change in quantity supplied and a change in price. Supply responds positively to price, so PES is positive.