Any four factors affecting elasticity of supply?????
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Answered by
16
Heya....
Elasticity of supply is the % change in quantity supplied in response to % change in price....
"""" Factors affecting elasticity of supply are......
-->> Technology of production....
If the production techniques are outdated then it delayed in supply ,, so it will be less elastic and vice versa....
-->> Cost of production....
If inputs cost are low then producer can produce more goods to sell it will create more elasticity and vice versa....
-->> Nature of the commodity...
Durable goods have more elasticity becz producer can wait to rise in price but perishable goods have less elasticity becz can't wait to rise in price for them....
-->> Nature of inputs used...
If inputs are easily available then producer can produce suddenly at high price and others can't. ...
-- Be Brainly....
Elasticity of supply is the % change in quantity supplied in response to % change in price....
"""" Factors affecting elasticity of supply are......
-->> Technology of production....
If the production techniques are outdated then it delayed in supply ,, so it will be less elastic and vice versa....
-->> Cost of production....
If inputs cost are low then producer can produce more goods to sell it will create more elasticity and vice versa....
-->> Nature of the commodity...
Durable goods have more elasticity becz producer can wait to rise in price but perishable goods have less elasticity becz can't wait to rise in price for them....
-->> Nature of inputs used...
If inputs are easily available then producer can produce suddenly at high price and others can't. ...
-- Be Brainly....
Answered by
5
heya...
Here is your answer...
1. Price of the Good:
The supply and elasticity of supply of a good depend upon the price of the good. If the price of a good increases or decreases, the quantity supplied of it will also increase or decrease, respectively. This is the law of supply. Also the coefficient of price-elasticity of supply (ES) will depend on the price of the good. ES may be greater than, less than, or equal to one, depending on the price.
2. Probability that the Price would Change in Future:
If the sellers think that the price of the good will increase (or decrease) in near future, then, at any particular price at present, they would want to decrease (or increase) their supply. In this case, the supply curve for the good would shift to the left (or to the right).
3. Conditions Regarding Cost of Production:
If the cost of production of a good increases (or decreases), i.e., if its cost curve shifts upwards (or downwards), then the quantity supplied of the good would decrease (or increase) at any particular price, i.e., the supply curve would shift to the left (or to the right).
4. Nature of the Good:
The supply of a good depends upon the nature of the good, e.g., on the perishability and lumpiness of the good. The more the perishability or lumpiness of the good, the more would be its market localised, and, in a localised market, the supply of a good at any particular price would be relatively small.
It may help you...☺☺
Here is your answer...
1. Price of the Good:
The supply and elasticity of supply of a good depend upon the price of the good. If the price of a good increases or decreases, the quantity supplied of it will also increase or decrease, respectively. This is the law of supply. Also the coefficient of price-elasticity of supply (ES) will depend on the price of the good. ES may be greater than, less than, or equal to one, depending on the price.
2. Probability that the Price would Change in Future:
If the sellers think that the price of the good will increase (or decrease) in near future, then, at any particular price at present, they would want to decrease (or increase) their supply. In this case, the supply curve for the good would shift to the left (or to the right).
3. Conditions Regarding Cost of Production:
If the cost of production of a good increases (or decreases), i.e., if its cost curve shifts upwards (or downwards), then the quantity supplied of the good would decrease (or increase) at any particular price, i.e., the supply curve would shift to the left (or to the right).
4. Nature of the Good:
The supply of a good depends upon the nature of the good, e.g., on the perishability and lumpiness of the good. The more the perishability or lumpiness of the good, the more would be its market localised, and, in a localised market, the supply of a good at any particular price would be relatively small.
It may help you...☺☺
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