Download the App!

Get 24/7 study help with the Numerade app for iOS and Android! Enter your email for an invite.

Get the answer to your homework problem.

Try Numerade free for 7 days

Like

Report

What is the price elasticity of supply? Can you explain it in your own words?

Price elasticity of supply estimates the extent of change in quantity supplied in response tochange in price. In simple words, it refers to ratio of percentage change in quantity supplied topercentage change in price.Algebraically, change in quantity supplied is divided by change in price and both changes arecalculated in percentage. For price elasticity of supply is written below.price elasticity of supply $=\frac{\% \text { change in quantity supplied }}{\%}$

No Related Courses

Chapter 5

Elasticity

How Markets Work

Markets and Welfare

Qasim R.

January 1, 2022

15:55

What is the price elastici…

02:34

Describe elasticity of dem…

02:13

03:11

What is the relationship b…

00:40

What is the formula for th…

00:37

00:47

01:14

Describe the general appea…

01:58

What is the formula for me…

01:10

03:05

What is the law of supply?…

03:41

Find (a) the elasticity of…

00:23

What is the formula for ca…

03:42

01:52

What is marginal cost? Why…

01:47

Elasticity of cost with re…

02:25

What are the units of elas…

01:45

What would the gasoline pr…

02:46

02:45

all right, we're doing problem number 12 from chapter five. It's asking, what is the price Elasticity of supply. Can you explain it in your own words? So I've gone ahead and written out the formula, which is percent change, quantity over percent change price. And if we think about what this represents, um, price elasticity of supply is essentially saying for a change of one unit or 1% rather in price, how our producer is going to affect how much they produce in other words, how much your supplier's gonna affect how much they supply. So let's say we see 1.5. Well, that's gonna mean that suppliers are changing their quantity. Their production more than price, is changing. In other words, they're more reactive. If we were to see a percent change of 0.5 and quantity for a percent of price for a percent change of one of price, what does this mean? Well, it means that they are less responsive because for one unit of change in price, it's only 1/2 years of change

View More Answers From This Book

Find Another Textbook

What is the price elasticity of demand? Can you explain it in your own words…

Describe elasticity of demand in your own words.

What is the relationship between price elasticity and position on the demand…

What is the formula for the cross-price elasticity of demand?

What is the formula for the income elasticity of demand?

What is the formula for the wage elasticity of labor supply?

Describe the general appearance of a demand or a supply curve with infinite …

What is the formula for measuring the price elasticity of supply? Suppose th…

Describe the general appearance of a demand or a supply curve with zero elas…

What is the law of supply? What are the main variables that cause a supply c…

Find (a) the elasticity of demand and (b) the range of prices for which the …

What is the formula for calculating elasticity?

What is marginal cost? Why is the supply curve referred to as a marginal cos…

Elasticity of cost with respect to quantity is defined as $E_{C, q}=q / C \c…

What are the units of elasticity if:(a) Price $p$ is in dollars and quan…

What would the gasoline price elasticity of supply mean to UPS or FedEx?

00:12

What is a production technology?

If demand is elastic, will shifts in supply have a larger effect on equilibr…

01:38

What is total surplus? How is it illustrated on a demand and supply diagram?…

02:31

As a general rule, is it safe to assume that a lower interest rate will enco…

01:28

How will a utility-maximizer find the choice of leisure and income that prov…

01:11

What is the price elasticity of supply? Can you explain it in your own words…

01:59

Does a price ceiling change the equilibrium price?

02:39

Return to the example in Figure 2.4. Suppose there is an improvement in medi…

How would an increase in expected income over one’s lifetime affect one’s in…