What should be researc hypothesis on employment elasticity?
Answers
rice elasticity of supply measures the responsiveness of supply to a change in price/demand of the product. Higher the price elasticity of supply, higher is the ability of a producer to responsd to change in demand and greater is his control over the market/price. For example a perishable product has lower price elasticity of supply as it can't be stored. In a situation where demand/price of perishable product falls, the producer has no option but to sell it a lower price as delaying the sale is not possible. So it's important for the producer to find ways and techniques through which the product could be stored for a longer duration of time enabling him to sell the product only when price is reasonable.
The producers should also invest in time saving technology and training of workers to increase productivity/speed of work to raise price elasticity of supply. The reduced production time enables a seller to instantly bring more supplies in the market if the demand/price of the product rises. These producers will be at an advantage compared to others and will be in a better position to capitalize business opportunities more efficiently.
BE SMART.......^_^