Measurement of elasticity of Supply

Elasticity of supply can be measured by following formula: Elasticity of supply = = = = ×   We illustrate below measurement of elasticity of supply at the point P on the supply curve SS according to the above formula. In Fig. SS1 is the supply curve. P is any point on it. Through P a […]

Types of Elasticity of Supply

The term elasticity of supply expresses the degree of correlation between supply and price. Symbolically, Rs = ×   Dqs = Change in quantity Supplied Dps = Change in price Es = Elasticity of supply If the little fall in price supply contracts greatly, the supply will be more elastic. But with a greater fall in […]