Sponsored Links

Results 1 to 2 of 2

Thread: ECO401 New GDB

  1. #1
    Junior Member
    Join Date
    Nov 2010

    27 ECO401 New GDB

    Sponsored Links

    The elasticity of supply measures the percentage change in the quantity supplied of a commodity as a result of percentage change in its price. It is a pure number and is positive because price and quantity move in the same direction. In general, percentage change in elasticity is used instead of absolute change in elasticity. The slope of supply is an unsatisfactory measure of the responsiveness in the quantity supplied of a commodity with respect to the change in its price but the concept of elasticity of supply has overcome this difficulty.

    Sponsored Links

    With reference to the above scenario, why is the slope of supply an unsatisfactory measure of the responsiveness in the quantity supplied of a commodity to a change in its price?

  2. #2
    Administrator Xpert's Avatar
    Join Date
    May 2010
    The require solution is :
    The elasticity of supply measures the responsiveness the quantity

    supplied to a change in the price of that commodity.

    Because supply curves slope upwards, the elasticity of supply is

    positive. As we move along a supply curve, positive price changes

    are associated with positive output changes. An increase in price

    causes an increase in quantity sold. The more elastic is supply the

    larger the percentage increases in quantity supplied in response to a

    given percentage change in price. Thus elastic supply curves are

    relatively flat and inelastic supply curves relatively steep.

    There are important special cases. If the supply curve is vertical, -the

    quantity supplied does not change as prices changes- elasticity of

    supply is zero. A horizontal supply curve has an infinitely high

    elasticity of supply: A small drop in price would reduce the quantity

    producers are willing to supply from an indefinitely large amount to


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. ECO401 GDB Spring 2011
    By ironwood in forum Get Solution In 24 Hour
    Replies: 17
    Last Post: 04-29-2011, 03:22 PM
  2. today my eco401 paper 32 Q
    By Xpert in forum Current Papers 2010
    Replies: 0
    Last Post: 12-01-2010, 06:45 PM
  3. need eco401 assignment solution
    By faizashoukat in forum Get Solution In 24 Hour
    Replies: 1
    Last Post: 10-30-2010, 04:35 PM
  4. ECO401 Midterm Paper
    By Awais in forum MCQ's & Quiz Discussion
    Replies: 1
    Last Post: 06-05-2010, 03:13 AM
  5. Eco401
    By Jawad in forum MCQ's & Quiz Discussion
    Replies: 0
    Last Post: 05-02-2010, 06:14 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
-: Vuhelp Disclaimer :-
None of the files shown here are hosted or transmitted by this server. The links are provided solely by this site's users. The administrator's or staff of Vuhelp.net cannot be held responsible for what its users post, or any other actions of its users. You may not use this site to distribute or download any material when you do not have the legal rights to do so. It is your own responsibility to adhere to these terms. If you have any doubts about legality of content or you have any suspicions, feel free to contact us.
Online Education | JhelumSoft