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What are the degrees of price elasticity of supply? |
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Answer» Solution :The degrees of price ELASTICITY of SUPPLY are : (i) Perfectly ELASTIC supply. When there is an infinite supply at a particular price and supply becomes zero with a slight fall in price. ltbr. (ii) Perfectly inelastic supply. When supply does not change with change in price. ltbr. (iii) Highly elastic supply. When `%` change in quantity supplied is GREATER than `%` change in price. (iv) Less elastic supply. When `%` change in quantity supplied is less than `%` change in price. ltbr. (v) UNITARY elastic supply. When `%` change in quantity supplied is equal to `%` change in price. |
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