Price Elasticity of supply

what is the elasticity of the commodity ?

• Inelastic supply

• Elastic supply

• Unitary supply

• Perfectly inelastic supply

1. If you were a business person, how would you apply the idea of elasticity of supply?

• Product with elastic supply , responsive to price change

• Product with inelastic supply, not very responsive to price change

• Product with perfectly inelastic supply, not at all responsive to price change

• Product with perfectly elastic supply , very responsive to change

Suppose a natural disaster suddenly reduces the supply of a key raw material.

How would this affect the price elasticity of supply for products dependent on that material?

• Product with elastic supply , responsive to price change

• Product with inelastic supply, not very responsive to price change

• Product with perfectly inelastic supply, not at all responsive to price change

• Product with perfectly elastic supply , very responsive to change

Compare the price elasticity of supply for agricultural products with that of manufactured goods.

What are the reasons behind any differences in elasticity between these two types of goods?

Suppose a natural disaster suddenly reduces the supply of a key raw material.

How would this affect the price elasticity of supply for products dependent on that material?

Consider a situation where a firm faces an inelastic supply curve for a life-saving medication. Discuss how the firm might set its prices & quantity supplied under these circumstances.