price of elasticity supply
The responsiveness of a good or service's supply to a change in its market price is measured by price elasticity of supply. When the price of a good rises, the supply of that good rises as well, according to basic economic theory. When the price of a commodity falls, the supply of that good falls as well.
There's also demand price elasticity. This metric indicates how sensitive a price change is to the quantity ordered. Overall, price elasticity assesses how much a product's supply or demand varies as a result of a price shift. The term "elastic" refers to a product's sensitivity to price changes. The term "inelastic" refers to a product that is not affected by price changes.
Supply price elasticity = percent change in supply divided by percent change in price
Calculate the price elasticity of supply for each of the following combinations of price and quantity supplied. In each case. determine whether supply is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic.
brainly.ph/question/20018751
#letsstudy
