When does the elasticity of supply of commodity called equal to unity?
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The law of supply states the direct relationship between the price of a product and quantity supplied of the product.
In simple words, if the price of a product increases, the quantity supplied for the product also increases.
On the other hand, if there is fall in the price of a product, then the quantity supplied of the product would also decrease.
“The supply of a commodity is said to be elastic when as a result of a charge in price, the supply changes sufficiently as a quick response. Contrarily, if there is no change or negligible change in supply or supply pays no response, it is elastic”-Prof Thomas.
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