Elasticity of supply is given by the formula
ΔP/ΔQ . Q/P
ΔQ/ΔP . P/Q
ΔQ/ΔP . Q/P
ΔQ/ΔP
When price of substitutes and costs of production rises, it leads to :
Contraction in supply
Decrease in supply
Expansion in supply
Increase in supply
If price of substitute goods fall, then it will lead to
No change in supply
Constant
If value of Es > 1, it is called
Inelastic Supply
Elastic Supply
Perfectly elastic supply
Perfectly inelastic supply
Slope of supply curve is given by the formula
ΔP/ΔQ
P/Q
Q/P
Change in supply due to increase in price is termed ________ supply.
Contraction of
Extension of
Increase in
If 10% increase in the price of scooters increases supply of scooter by 20% the supply of scooters will be
Perfectly Elastic
Elastic (more than unit)
Inelastic
Perfectly Inelastic
The value of elasticity of supply ranges from
One to infinity
Zero to infinity
Minus infinity to plus infinity
Zero to minus infinity
The supply in the long period is
Elastic
Supply of agricultural produce depends upon
Natural Causes
Taxation Policy
Technological Development
Price of other goods
