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Chapter: 11th Economics : Chapter 3 : Production Analysis

Types of Elasticity of Supply

There are five types of elasticity of supply.

Types of Elasticity of Supply

 

There are five types of elasticity of supply.

 

1. Relatively elastic supply (see Diagram 3.13)

 

The co-efficient of elastic supply is greater than 1(Es > 1). One percent change in the price of a commodity causes more than one per cent change in the quantity supplied of the commodity.

 

2. Unitary elastic supply (see Diagram 3.13)

 

The coefficient of elastic supply is equal to 1 (Es = 1). One percent change in the price of a commodity causes an equal ( one per cent) change in the quantity supplied of the commodity.

 

3. Relatively inelastic supply (see Diagram 3.13)

 

The coefficient of elasticity is less than one (Es < 1). One percent change in the price of a commodity causes a less than one per cent change in the quantity supplied of the commodity.

 



4. Perfectly inelastic supply (see Diagram 3.13)

 

The coefficient of elasticity is equal to zero (Es = 0). One percent change in the price of a commodity causes no change in the quantity supplied of the commodity.

 

5. Perfectly elastic supply (see Diagram 3.13)

 

The coefficient of elasticity of supply is infinity. (Es = α ). One percent change in the price of a commodity causes an infinite change in the quantity supplied of the commodity.

 

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