Change in quantity supplied will have upward slopping which means increase in quantity supplied or extension of supply and vice versa.
Why it will move upward and downward?
The change in quantity supplied is due to the price of the product itself while change in supply is due to the factors i mentioned just now. Change in supply graph is same as the change in demand. When increase in supply it will shift to right. When decrease in supply it will shift to left.
Is we have price elasticity of supply?
Yes! Price elasticity of supply is to measure the degree of responsiveness of the quantity supplied of a product to changes in its price.
What is the elasticity of supply?
There are various elasticity of supply.-perfect inelastic (Es=0)-perfect elastic supply (Es=∞)-unitary elastic (Es=1)- Fairly inelastic (0< Es< 1)-Fairly elastic (1<Es<∞)
What is the factors that influence it?
The factors that influenced elasticity of supply are:-Time period (the market period, the short run period, the long run period)-Availability or resources-Excess capacity-Possibility of storing goods
Okie! A big thanks to you man! If i aced in exam will definitely treat you back. Bye~
I guess that all for Chapter 2. Well remember to revise it. Off to dance! Bye~