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Types Of Price Elasticity Of Supply
Jawaban: #1: When one percent price change results in less than one percent quantity change then it is a case of inelastic supply.
On the contrary when one percent price change results in more than one percent quantity change then the commodity is said to have elastic supply.
Can the percentage change in quantity be equal to the percentage change in price? When this happens i.e when one percent change in price brings one percent quantity change then it is said that the commodity has unitary price elasticity of supply.
The above types are further categorised as under:
Completely (Perfectly) Inelastic supply: In this case the quantity supplied does not react to the changes in the price. The increase or decrease in the price does not change the quantity supplied. The diagram below shows us the completely inelastic supply:
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