Price elasticity of supply, Managerial Economics

Price Elasticity of Supply

Price Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in  price.  The co-efficient of the elasticity of supply may be stated as:

Es   =   Percentage change in the quantity supplied

             Percentage change in price.

Mathematically, this can be written as:  1043_price elasticity of supply.png

Symbolically it is given by the formula  Es  =  2184_price elasticity of supply1.png

Because of the positive relationship between price and quantity supplied, the price elasticity of supply ranges from zero to infinity.

Posted Date: 11/27/2012 6:44:32 AM | Location : United States







Related Discussions:- Price elasticity of supply, Assignment Help, Ask Question on Price elasticity of supply, Get Answer, Expert's Help, Price elasticity of supply Discussions

Write discussion on Price elasticity of supply
Your posts are moderated
Related Questions
Oligopoly can be characterized as follows: Small Number of Sellers: There are more than one sellers of a product though; the number isn't so huge in order to produce perfect

The production function is Q= 20 K0.5 L0.5 Question: For the production function Q= 20 K0.5 L0.5 determine four combinations of capital and labor that will produce 100 and 200 unit

Describe ramsey pricing with detailed examples

Cross Elasticity Cross elasticity of demand measures the degree of responsiveness of the quantity demanded of one good (B) to changes in the price of another good (A).  It is

Q. Explain about Linear Isoquant? : In this case, isoquant would be straight lines as in Figure below. This type presumes perfect substitutability of factors of production. I

Apprehensions about the future price of law of demand When consumers anticipate a constant rise in the price of a long-lasting commodity, they buy more of it despite the price

Paper Money Due to the risk of theft, members of the public who owned such metal money would deposit them for safe keeping with goldsmiths and other reliable merchants who

how equilibrium output can be find in williamson model

income generation process through investment multiplier

Explain the importance of Managerial economics Managerial economics bridges the gap among 'theoria' and 'pracis'. The tenets of managerial economics have been derived from quan