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Question
Draw and explain the following degree of elasticity of supply.
Ep > 1
Solution
Supply of a commodity will said to be elastic, if the percentage change in quantity supplied exceeds the percentage change in once. In other words, elastic supply is one in which elasticity is greater than one indicating high responsiveness supply in it the change price.
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RELATED QUESTIONS
Explain briefly the impact of the cost of production on the elasticity of supply.
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| C. Inelastic | (iii) Es = 0 |
| D. Highly Elastic | (iv) Es = infinity |
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