Economics

Elasticity of Supply

Elasticity of Supply: Elasticity of supply may be defined as the degree of responsiveness of change in supply to change in price on the part of sellers. It is mathematically expressed as: Elasticity of supply = proportionate change in supply / proportionate change in price es=(ΔQs/Qs) / (ΔP/P); es= ΔQs / ΔP × P/Qs Where […]