This preview shows page 1. Sign up to view the full content.
Unformatted text preview: asticity of Supply a measure of the responsiveness of a product's quantity supplied to a change in the product's price = % change in quantity supplied
% change in price = change in quantity / average quantity
change in price / average price Price Elasticity of Supply
Price (dollars per pizza) 40.00 30.00 20.00 10.00 An increase in demand brings ... Sa Large price change and small quantity change ... a large price rise... ... and a small quantity increase D1 25 D0 0 5 10 13 15 Quantity (pizzas pe...
View Full Document
- Fall '14