1.

State and explain the elasticity of supply?

Answer»
  1. Elasticity of supply may be defined as the degree of responsiveness of change in supply to change in price on the part of sellers.
  2. It is Mathematically expressed as,

Elasticity of supply = Proportionate change in supply / Proportionate change in price
es = (ΔQS/QS) / (ΔP/P)
es = (ΔQS/ΔP) × (P/Qs)
Where Qs represents the supply, P represents price, ∆ denotes a change.


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