Types of elasticity of supply with example
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Different commodities respond differently to a given change in price. Depending upon the degree of responsiveness of the quantity supplied to the price change, there are five kinds of price elasticities of supply.
. Perfectly Elastic Supply:
When there is an infinite supply at a particular price and the supply becomes zero with a slight fall in price, then the supply of such a commodity is said to be perfectly elastic. In such a case Es = ∞ and the supply curve is a c horizontal straight line parallel to the X-axis,
2. Perfectly Inelastic Supply:
When the supply does not change with change in price, then supply for such a commodity is said to be perfectly inelastic.
In such a case, Es = 0 and the supply curve (SS) is a vertical straight line parallel to the Y-axis
3. Highly Elastic Supply:
When percentage change in quantity supplied is more than the percentage change in price, then supply for such a commodity is said to be highly elastic. In such a case, Es > 1 and the supply curve has an intercept on the Y-axis
. Perfectly Elastic Supply:
When there is an infinite supply at a particular price and the supply becomes zero with a slight fall in price, then the supply of such a commodity is said to be perfectly elastic. In such a case Es = ∞ and the supply curve is a c horizontal straight line parallel to the X-axis,
2. Perfectly Inelastic Supply:
When the supply does not change with change in price, then supply for such a commodity is said to be perfectly inelastic.
In such a case, Es = 0 and the supply curve (SS) is a vertical straight line parallel to the Y-axis
3. Highly Elastic Supply:
When percentage change in quantity supplied is more than the percentage change in price, then supply for such a commodity is said to be highly elastic. In such a case, Es > 1 and the supply curve has an intercept on the Y-axis
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