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Social Science Clinic => Economics => Microeconomics => Topic started by: newbem on May 24, 2019

Title: What is the price elasticity of supply? List and briefly define three cases of the price elasticity of supply.
Post by: newbem on May 24, 2019

What is the price elasticity of supply? List and briefly define three cases of the price elasticity of supply.

Title: What is the price elasticity of supply? List and briefly define three cases of the price elasticity of supply.
Post by: swimkari on May 24, 2019

The price elasticity of supply measures how responsive quantity supplied is to a change in the price of the good. Supply can be price elastic, if the percentage change in the quantity supplied exceeds the percentage change in the price, price inelastic, if the percentage change in the quantity supplied is less than the percentage change in the price, or unit elastic, if the percentage change in the quantity supplied equals the percentage change in the price.