price elasticity of supply

Question 1

is a concept in economics that shows how much the amount of a product that sellers are willing to offer changes when the price of that product goes up or down.

Answer 1

price elasticity of supply

Question 2

Price Elasticity of Supply is said to be __ when at a particular price, there is infinite supply for a commodity, and with even a small change in its price, the supply becomes zero. Perfectly Elastic Supply indicates that the suppliers are willing to sell only when the prices of commodities are high. The price elasticity in this case is infinite; i.e., ES = ∞

Answer 2

perfectly elastic supply

Question 3

Price Elasticity of Supply is said to be __ when the percentage change in supply is relatively greater than the percentage change in price. The price elasticity of supply in such cases is greater than 1, i.e., ES > 1

Answer 3

highly elastic supply

Question 4

Price Elasticity of Supply is said to be __ when a price change is precisely equal to the change in quantity supplied. The price elasticity of supply is 1 in such cases; i.e., ES = 1

Answer 4

unit elastic supply

Question 5

Price Elasticity of Supply is said to be __ when the percentage change in supply is relatively lower than the percentage change in price. Price Elasticity of Supply is less than 1 in such cases; i.e., ES < 1

Answer 5

less elastic supply

Question 6

Price Elasticity of Supply is said to be __ when the quantity supplied does not change with the change in price. It shows that the supply would remain the same irrespective of the price. The price elasticity in this case is zero; i.e., ES = 0

Answer 6

perfectly inelastic supply