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Questions
Draw and briefly explain a perfectly elastic supply curve.
With the help of suitable diagrams, explain the Perfectly elastic supply.
Draw and explain the following degree of elasticity of supply.
Ep = 0
Solution
When the supply of a commodity changes without change in its price, the supply of a commodity changes without change in its price, the supply of the commodity will be called perfectly elastic. The value of price elasticity of supply in this case is infinity, es = α. It is purely an imaginary concept and can only be explained with the help of an imaginary supply schedule as given below.
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RELATED QUESTIONS
Explain briefly the impact of the cost of production on the elasticity of supply.
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Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column:
| Column I | Column II |
| A. Perfectly Inelastic | (i) Es > 1 |
| B. Perfectly Elastic | (ii) Es < 1 |
| C. Inelastic | (iii) Es = 0 |
| D. Highly Elastic | (iv) Es = infinity |
Choose the correct alternative:
Define elasticity of supply.
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With the help of a formula calculate the elasticity of supply from the following table:
| Price | Quantity supplied |
| 10 | 200 |
| 15 | 225 |
Draw and briefly explain a perfectly inelastic supply curve.
Give the meaning of perfectly elastic supply.
Draw the supply curve showing price elasticity of supply equal to one.
Draw the supply curve showing price elasticity of supply greater than one.
Draw the supply curve showing price elasticity of supply less than one.
Identify and define the degree of price elasticity of supply from the diagram for the supply curves S1, S2, S3, S4.
What do you mean by elastic supply?
When is supply of a good unitary elastic?
What do you mean by perfectly inelastic supply?
Draw relatively elastic supply.
