Lectur19 - SupplyElasticity SupplyElasticity ElasticityofSupply ElasticityofSupply changeinprice Es= Qs P Es= QSXP0 PQ0 If Es>1elas

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Supply Elasticity Supply Elasticity
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Elasticity of Supply, Elasticity of Supply, Is the percentage change in quantity  supplied associated with a percentage  change in price. Es =  %    Qs  / %   P
Background image of page 2
Es =   Q S     X     P 0              P               Q 0
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Interpreting Elasticity of Supply Interpreting Elasticity of Supply If  Es  >  1     elastic supply Es  <  1   inelastic supply Es  =  1   unitary elastic supply
Background image of page 4
If the Supply curve is a straight line: P Qs/ut S If the supply curve cuts the price axis (Y), then supply is  ELASTIC Es > 1
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
If the Supply curve is a straight line: P Qs/ut S If the supply curve cuts the quantity axis (X), then supply  is  INELASTIC Es < 1
Background image of page 6
If the Supply curve is a straight line: P Qs/ut S If the supply curve comes out of the origin, then supply
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 10
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/06/2011 for the course ECON 101, 102, taught by Professor Staff during the Fall '10 term at Rutgers.

Page1 / 12

Lectur19 - SupplyElasticity SupplyElasticity ElasticityofSupply ElasticityofSupply changeinprice Es= Qs P Es= QSXP0 PQ0 If Es>1elas

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online