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Question
Identify the elasticity of supply (es) of S1, S2 and S3 supply curves:
Options
All have es > 1
All have es < 1
All have es = 1
All have es = 0
Solution
All have es > 1
Explanation:
In graphical presentation, when supply curves begin on the Y axis, the elasticity of supply is greater than 1. A curve beginning on the y axis indicates that even at a price close to zero, suppliers are prepared to deliver a certain number of goods. As the price rises, the quantity supplied grows at a faster rate, indicating high elasticity.
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RELATED QUESTIONS
Identify the elasticity of supply for the following with proper reasoning:
Primitive and advanced technology.
Identify the degree of elasticity of supply from the following graph:
- Price elasticity of supply of a good is 0.8, its supply is said to be inelastic.
- If the quantity supplied of a commodity remain the same whatever its price supply is said to perfectly inelastic.
Which of the following statements are true?
The cost of production will increase if
- The government gives subsidies
- The firm uses obsolete technology
- The price of diesel increases
Pick the option which does not belong to the group.
Assertion (A): In case of perfectly inelastic supply, supply curve is a vertical straight line supply curve.
Reason (R): Supply does not change with change in price in case of Es = 0.
Define elasticity of supply.
When is the supply of a commodity is called elastic?
Draw a straight line supply showing elasticity greater than one.
Define price elasticity of supply.
Indicate the degree of elasticity on the supply curve given below:
What is meant by elasticity of supply?
Using graphs, explain any four types of elasticity of supply.
Why does the measure of pnce elasticity of supply of a good carry plus sign?
When is supply of a good unitary elastic?
Draw a straight line supply curve of the following situation.
More than unitary elastic
Draw relatively elastic supply.
