Price Elasticity of Supply

Price Elasticity of Supply - • Price Elasticity of Supply...

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Price Elasticity of Supply Similar concept to demand elasticity If a supplier adjusts supply according to price changes then the supply is elastic If the quantity supplied does not respond to price changes, then price is inelastic
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Unformatted text preview: • Price Elasticity of Supply Coefficient (Es) = % ∆ QS % ∆ Price Es > 1 Supply is Elastic Es < 1 Supply is Inelastic Es = 1 Unitary Elastic Price S2 Elastic S1 Perfectly Inelastic Quantity Supplied...
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This note was uploaded on 02/05/2011 for the course ECON 011 taught by Professor Yezer during the Fall '07 term at GWU.

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