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 price supply contracts a little, the supply is said to be inelastic or less elastic. The converse is also true. If a little rise in price leads to a larger extension in supply the supply is more elastic, and if a greater rise in price causes a small extension in supply, the supply is said to be inelastic or less elastic.

More elastic and less elastic supply curves are illustrated with the help of following figures.


Above Fig. shows more elastic supply. OX measures quantity supplied and OY measures price. When price changes by P1P2 i.e. Dp the quantity supplied changes by MM1 or DQ. Here rise in price is much less than the extension in supply. Thus SS1 curve shows elastic supply.

In the figure below S1S1 is the supply curve showing less elastic supply since the rise in price (DP) is more than the extension in supply (DQ).


Unitary elastic supply curve parses through the origin. At every point on this supply curve percentage change in quantity supplied is just equal to percentage in price. This is explained by the diagram below.


An absolutely inelastic supply curve is represented by a vertical straight line and a perfectly inelastic supply curve is represented by a horizontal straight line. The perfectly inelastic and perfectly elastic supply is the two extremes between which there may be varying degrees of elasticity.

4 thoughts on “Types of Elasticity of Supply”

  1. My wife and i have been absolutely delighted that Michael managed to deal with his reports by way of the precious recommendations he grabbed using your web pages. It is now and again perplexing to simply possibly be giving away information which usually men and women could have been trying to sell. We take into account we have got the website owner to give thanks to for this. All of the illustrations you’ve made, the straightforward web site navigation, the friendships you help to engender – it’s got mostly wonderful, and it’s really aiding our son and us do think the situation is brilliant, and that’s tremendously essential. Thanks for everything!

  2. I really wanted to write a brief word to say thanks to you for all of the pleasant secrets you are posting on this website. My rather long internet research has finally been rewarded with good suggestions to go over with my family and friends. I ‘d tell you that most of us visitors are undoubtedly blessed to exist in a great community with so many lovely professionals with good concepts. I feel really happy to have used the webpage and look forward to many more pleasurable minutes reading here. Thanks a lot once again for everything.

  3. I’m writing to make you understand of the great experience my wife’s daughter undergone using your blog. She figured out numerous things, most notably what it’s like to possess an ideal coaching style to make most people clearly understand a number of hard to do issues. You truly surpassed readers’ expectations. Thanks for showing the beneficial, healthy, explanatory and in addition cool guidance on that topic to Janet.

  4. I truly wanted to write down a quick word to express gratitude to you for all the superb ways you are showing at this site. My time consuming internet lookup has at the end of the day been recognized with incredibly good details to exchange with my partners. I ‘d point out that we website visitors are rather fortunate to exist in a wonderful community with so many wonderful individuals with insightful advice. I feel extremely lucky to have discovered the site and look forward to so many more excellent times reading here. Thanks a lot once more for everything.

Leave a Reply

Your email address will not be published. Required fields are marked *