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 Qs;
represents the supply, P
represents price, Δ denotes a change.
