Question

Flower farmers have an elastic supply, so how will an increase in price affect supply?

Answer 1

Answer:

Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price. According to basic economic theory, the supply of a good will increase when its price rises. Conversely, the supply of a good will decrease when its price decreases.

There’s also price elasticity of demand. This measures how responsive the quantity demanded is affected by a price change. Overall, price elasticity measures how much the supply or demand of a product changes based on a given change in price. Elastic means the product is considered sensitive to price changes. Inelastic means the product is not sensitive to price movements.