class 12 microeconomics elasticity of supply very important notes
Elasticity of supply ....... short and easy notes for board exam. 1. What do you mean by elasticity of demand? > Elasticity of demand is the measurement of quantitative changes in supply due to change in price. It is the proportionate change in supply due to proportionate change in price. The elasticity of supply is positive because of the direct relationship between price and quantity supplied 2. What are the kinds or degree of elasticity of supply? > There are five kinds of elasticity of supply; Perfectly elastic supply - without change in price, supply become infinite. It is the situation of perfectly elastic supply. Greater than unitary elastic supply - when proportionate change in quantity supplied, is more than proportionate change in price. Elasticity of demand becomes greater than unit. Unitary elastic supply - proportionate change in quantity supply become equal to change in price. Inelastic supply - proportionate change in quantity supply is less than proporti...