Question

Distinguish between the Relatively Elastic Supply and Relatively Inelastic Supply

Answer 1

These other factors can be technological advancements, change in the prices of inputs etc. Change in supply can be of two types namely, increase in supply and decrease in supply. Increase in supply: There is an increase in supply due to the favourable changes in the determinants other than the price of the good.

Answer 2

Relatively inelastic supply Supply is said to be elastic when the percentage change in the quantity supplied is less than the percentage change in its price. Any straight line supply curve that cuts the X-axis has inelastic supply all through.