Frosty0110idn
Answered

IDNLearn.com makes it easy to get reliable answers from knowledgeable individuals. Ask your questions and receive reliable, detailed answers from our dedicated community of experts.

Understanding Elasticity of Supply

Use the drop-down menu to complete each statement.

A good is considered _______ when producers can quickly supply more or less of it based on changing prices.

A good is considered _______ when producers cannot quickly change how much of it is supplied when prices change.

Sagot :

GinnyAnsweridn

Final answer:

Price Elasticity of Supply measures the responsiveness of quantity supplied to price changes.


Explanation:

Price Elasticity of Supply: The price elasticity of supply measures how responsive the quantity supplied of a good is to a change in price. It is calculated by dividing the percentage change in quantity supplied by the percentage change in price.

Elasticity Categories:

  • Price Elastic: When elasticity is greater than 1, the good is considered elastic.
  • Unit Price Elastic: An elasticity of 1 indicates unit elasticity.
  • Price Inelastic: Elasticity less than 1 signifies inelastic goods.

Learn more about Elasticity of Supply here:

https://brainly.com/question/43968471


Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Thanks for visiting IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more helpful information.