--%>
Assignment Help - homework help

Elasticity of Supply

Elasticity of Supply:

The law of supply states us that quantity supplied will react to a modification in price. The notion of elasticity of supply elucidates the rate of change in supply as an outcome of change in price. It is evaluated by the formula illustrated below:

Elasticity of supply = (Proportionate change in quantity supplied)
                                      (Proportionate change in price)
       
 ep = (?qs/ qs) / (?p / p)

Here,
q symbolizes the amount supplied,
p symbolizes price,
? symbolizes a change.

Elasticity of supply might be stated as “the degree of receptiveness of change in supply to modify in price on the portion of sellers”

   Related Questions in Microeconomics

  • Q : Tax problem Give the answer of

    Give the answer of following question. A progressive tax is such that: A) tax rates are higher the greater one's income. B) the same tax rate applies to all income receivers, so that the rich pay absolutely more taxes than the poor. C) entrepreneurial income is exempt

    		•
  • Q : Vertical Integration-Controlling

    The firm is vertically integrated when it: (1) Consists of an internationally recognized brand name. (2) Promotes career staffs to executive positions rather than hiring the experienced outsiders. (3) Merges with another firm which sells unrelated products. (4) Monopo

    		•
  • Q : Price of input influencing goods supply

    Elucidate how does change in price of input influence the supply of a good.

    		•
  • Q : Drop in interest rates of capital market

    Any drop in interest rates caused through people’s increased willingness to save, which will cause: (w) the rate of return schedule reflected in I0 to shift to the right. (x) the rate of return schedule reflected within I0 to shift to the left.

    		•
  • Q : Problem on equilibrium market price I

    I have a problem in economics on equilibrium market price. Please help me in the following question. The equilibrium market price subsists only if: (1) Quantity demanded equivalents the quantity supplied. (2) Surpluses exceed the shortages. (3) Expert

    		•
  • Q : Demand curve in the short run market

    For Christmas tree in this market, Curve H is this: (w) industry’s long-run supply curve. (x) firm’s demand curve in the short run. (y) industry’s marginal cost curve. (z) firm’s long run marginal cost curve.

  • Q : Present Value and Rates of Return When

    When the rate of return you calculate on an asset exceeds the interest rate: (1) competition for profit must make its price fall rapidly. (2) the price must fall rapidly. (3) the market is in long term equilibrium. (4) you should igno

    		•
  • Q : Slope of indifference Curve State the

    State the slope of indifference Curve? Answer: Slope of indifference curve is equivalent to MRS, that is, Marginal Rate of Substitution.

    		•
  • Q : Demography of Wealth and Poverty

    Poverty within the United States can be explained most properly by: (w) differences in effort and sacrifice. (x) voluntary choices of low income persons to consume more leisure at the expense of more income. (y) monopsonistic exploitation of labor by

    		•
  • Q : History of Industrial Unions I have a

    I have a problem in economics on History of Industrial Unions. Please help me in the following question. Industrial unions historically tried to systematize all the workers in: (i) A Specific Company or broad industry. (ii) The United States. (iii) A specific craft or

    		•