Question

outline the factors that affect price elasticity of supply

Answer 1

Answer:

Hope it helps friend. Please mark it as Brainliest!!

Explanation:

There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react.

For more help you can follow me friend

Answer 2

In Microeconomics,price elasticity of supply basically refers to the responsiveness or sensitivity of the supply level of any product or service in response to any change in its price.It is mathematically denoted as the ratio of percentage change in quantity supplied of any product or service and the percentage change in its price.

Explanation:

Factors affecting price elasticity of demand:-

1. Availability of factors/inputs of production:The time taken by the sellers or producers in any industry to change the production or output level of any product or service depends on how easily the necessary productive resources or factors/inputs of production are available to or accessed by the sellers or producers.The easier the accessibility or availability of necessary input resources and raw materials,the lower will be the reaction time to any price change of any product or service in the market by the sellers or producers.
2. Practical or natural constraints:In many industries it takes considerable time to adjust production or supply level of any good or service.For example,in agricultural production,it requires a certain amount of time for the crops or grains to harvest completely and hence,any price change during the off seasons would halt the consequent production or supply adjustments to a later time.
3. Costs or prices of factors/inputs of production:More expensive the factors/inputs of production and raw materials used by an industry in the production process,the lower will be the price elasticity of supply or the response of the sellers or producers to adjust production or output level and vise versa.
4. Factor/input mobility:The price elasticity of supply also evidently depends on the mobility of the factors/inputs of production and productive resources meaning how fast they can be transported from one physical location to the other,given the urgency of the sellers or producers.In general,a higher mobility of factor inputs implies faster response of the sellers and producers to a change in product/service price or higher price elasticity of supply and vise versa.
5. Risk taking ability:The risk taking ability of the seller or the producer also determines or influences the price elasticity of supply of any product or service.If any producer or supplier is willing to take higher business risk and invest in new production related business projects in a relatively short period of time,then it can facilitate short term adjustments in the production level in response to any price change.Hence,any significant changes or modifications in the production process in response to any change in product or service price involves various risky business endeavors which subsequently can impact the price elasticity of supply of any product or service in the market.