00:01
The price elasticity of supply measures the responsiveness of the quantity supplied of a good to a change in its price.
00:08
A more elastic supply means that the quantity supplied is more responsive to price changes.
00:13
Out of the given options, a higher proportion of national income is spent on a than b does not directly affect the price elasticity of supply.
00:24
It reflects the income elasticity of demand, not the elasticity of supply.
00:29
Option b, the cost of producing extra units increases more rapidly in the case of a than in case b.
00:34
This suggests that the supply curve for a is steeper, or less elastic, than for b.
00:42
If costs increase rapidly without increasing production for a, suppliers may be less willing or able to increase supply in response to price changes compared to b.
00:50
So a would have less elasticity, uh, a would have a less elastic supply compared to b.
01:04
For c, consumers find it easier to find alternatives to a than to b...