Elasticity of Supply and Degrees of Price Elasticity

Meaning of Elasticity of Supply by Alfred Marshal.

• change in quantity supplied of a commodity in response to change in its price.

• the amount of the change in the quantity demanded of a commodity in response to change in its price.

Perfectly inelastic supply

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Perfectly Elastic Supply

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Relatively Elastic Supply

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Relatively Inelastic Supply

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Unit Elastic Supply

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Perfectly inelastic supply

• there is no change in quanity supplied with change in price of product

• change in quantity supplied of a commodity in response to change in its price

Perfectly Elastic Supply

• there is no change in quanity supplied with change in price of product

• 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 a commodity changes with change in its price supply of a commodity

Relatively Inelastic Supply

• percentage change in quantity is supplied is less than the percentage change in quantity supplied is less than percentage change in price

• percentage change in quantity supply exceeds the percentage change in quantity supply exceeds the percentage change in price.

Relatively Elastic Supply

• percentage change in quantity supply exceeds the percentage change in quantity supply exceeds the percentage change in price.

• no change in quanity supplied with change in price of product