Question

Explain types of elasticity of supply. Answer only if you know.​

Answer 1

Answer:

A service or commodity has a perfectly inelastic supply if a given quantity of it can be supplied whatever might be the price. The elasticity of supply for such a service or commodity is zero. A perfectly inelastic supply curve is a straight line parallel to the Y-axis.

Explanation:

Answer 2

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➡Elasticity of Supply

The law of supply states that there is a direct relationship between the quantity supplied and the price of a commodity. To point out, this is a very qualitative statement. However, markets for different commodities differ in ways we can’t even imagine. Interestingly, the concept of elasticity of supply handles all this with ease.

➡Formula's of Elasticity supply.

Es= [(Δq/q)×100] ÷ [(Δp/p)×100] = (Δq/q) ÷ (Δp/p)

Δq= The change in quantity supplied

q= The quantity supplied

Δp= The change in price

p= The price

➡Elasticity from a Supply Curve

Along with the method mentioned above, there are two more ways to calculate the price elasticity of supply, both of which make use of the supply curve. We can either calculate the elasticity at a specific point on the supply curve, known as point elasticity or between two prices, known as arc-elasticity.

➡The formula for calculating the point elasticity of supply is:

Es= (dq/dp)×(p/q)

Here dq/dp is the slope of the supply curve.

The formula for calculating the arc-elasticity of supply is:

Es= [(q1 – q2)/( q1 + q2)] × [( p1 + p2)/(p1 – p2)]

• Perfectly Inelastic Supply
• Relatively Less-Elastic Supply
• Relatively Greater-Elastic Supply
• Unitary Elastic
• Perfectly Elastic supply

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