--%>
Assignment Help - homework help

Types of elasticity of supply

Types of elasticity of supply:

There are five kinds of elasticity of supply:

1. Perfectly elastic supply:

The coefficient of elasticity of supply is infinity. (i.e., es is ∞). For a little change or no alter in price, there will be an infinite amount of supply. (SS1 shown in figure below)

2. Relatively elastic supply:

The coefficient of elastic supply is always greater than 1(i.e., es > 1). Quantity supplied modifications by a bigger percentage than price. (SS2 shown in figure below)

3. Unitary elastic supply:

The coefficient of elastic supply is equivalent to 1 (i.e., es = 1). A change in cost will cause a proportionate modifications in quantity supplied. (SS3 shown in figure below)

4. Relatively inelastic supply:

The coefficient of elasticity is less than 1 (i.e., es < 1). Quantity supplied modifications by a lesser percentage than price. (SS4 shown in figure below)

5. Perfectly inelastic supply:

The coefficient of elasticity is equivalent to zero (i.e., es = 0).

The change in price will not bring around any modification in quantity supplied. (SS5 shown in figure below).

2214_types odf supply.jpg

   Related Questions in Microeconomics

  • Q : Problem regarding Hicks Model of

    The time period of union strikes and the equilibrium wage rate at conclusion of the strike are focus at: (i) Dept. of Labor’s Collective Bargaining Arbitration Division. (ii) Collective bargaining model made by Sir John Hicks. (iii) Bilateral monopoly model.(iv)

    		•
  • Q : Competitive pressures produce by

    Economic losses produce competitive pressures which decrease the industries: (w) output and number of firms. (x) prices and profits. (y) percentage mark-ups over costs. (z) long term labor turnover. I need a good a

    		•
  • Q : Making investment possible in an

    The group which ultimately makes investment in an economy possible is: (1) business firms. (2) households which consume less than their disposable incomes. (3) banks. (4) savings and loan associations. (5) financial tycoons.

    Q : Cost structure characteristic in purely

    When Cling Peach Orchards has a cost structure characteristic of peach orchards into this purely competitive industry, when the long run new competitors would most likely enter the market providing the wholesale price per bushel of peaches exceeded: (

    		•
  • Q : Bond of fixed annual income A bond

    A bond which pays a fixed annual income always is: (w) an eternity. (x) a perpetuity. (y) worthless. (z) infinitely valuable. Can anybody suggest me the proper explanation for given problem regarding Econom

    		•
  • Q : Perfectly elastic supply problem When

    When will a rise in demand entail an increase in the quantity demanded however no change in the price?

    		•
  • Q : Monopolistic competition and oligopoly

    One of my friends can't succeed to get the solution of this question. Give me solution of this question. Under what circumstances can monopolistic competition and oligopoly describe stable prices?

    		•
  • Q : Long-run supply curve of a purely

    Long-run supply curve of a purely competitive industry has a slope which is: (w) negative to offset the positive slope of each firm’s short-run supply. (x) positive to reflect the positive slope of each firm’s short-run supply. (y) depende

    		•
  • Q : Economic profits in long run A monopoly

    A monopoly will make economic profits within the short run: (w) but cannot create economic profits in the long run. (x) if average total costs [ATC] > P. (y) as long as total revenue exceeds total costs. (z) All of the above.

    		•
  • Q : Characterize market structure of

    The market structure of monopoly is characterized by: (w) a single firm producing a good which lacks close substitutes. (x) differentiated products produced by various firms. (y) marginal revenue or say MR less than price for several firms. (z) extens

    		•