February-8 - ECON203Notes PriceElasticityofSupply

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ECON 203 Notes 23:40 Price Elasticity of Supply Measures sellers’ responsiveness to price change Elastic supply, producers are responsive to price changes Inelastic supply, producers are not responsive to price change Formula to compute elasticity  E_s > 1 supply is elastic  E_s < 1 supply is inelastic  Time is primary determinant of elasticity of supply  Time periods considered  Market period  Short run Long run 
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February-8 - ECON203Notes PriceElasticityofSupply

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