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    Elasticity of Supply

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    Fredalyn Joy
    The document describes 5 alternatives for the price elasticity of supply curve: 1) Perfectly Elastic with an elasticity of infinity shown as a horizontal line, 2) Relatively Elastic with an elasticity between 1 and infinity shown as a flat curve, 3) Unit Elastic with an elasticity of 1 shown as a straight line from the origin, 4) Relatively Inelastic with an elasticity between 0 and 1 shown as a steep curve, and 5) Perfectly Inelastic with an elasticity of 0 shown as a vertical line.

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    Elasticity of Supply

    Uploaded by

    Fredalyn Joy
    64 views1 page
    The document describes 5 alternatives for the price elasticity of supply curve: 1) Perfectly Elastic with an elasticity of infinity shown as a horizontal line, 2) Relatively Elastic with an elasticity between 1 and infinity shown as a flat curve, 3) Unit Elastic with an elasticity of 1 shown as a straight line from the origin, 4) Relatively Inelastic with an elasticity between 0 and 1 shown as a steep curve, and 5) Perfectly Inelastic with an elasticity of 0 shown as a vertical line.

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    Elasticity of Supply

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    The document describes 5 alternatives for the price elasticity of supply curve: 1) Perfectly Elastic with an elasticity of infinity shown as a horizontal line, 2) Relatively Elastic with an elasticity between 1 and infinity shown as a flat curve, 3) Unit Elastic with an elasticity of 1 shown as a straight line from the origin, 4) Relatively Inelastic with an elasticity between 0 and 1 shown as a steep curve, and 5) Perfectly Inelastic with an elasticity of 0 shown as a vertical line.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    64 views1 page

    Elasticity of Supply

    Uploaded by

    Fredalyn Joy
    The document describes 5 alternatives for the price elasticity of supply curve: 1) Perfectly Elastic with an elasticity of infinity shown as a horizontal line, 2) Relatively Elastic with an elasticity between 1 and infinity shown as a flat curve, 3) Unit Elastic with an elasticity of 1 shown as a straight line from the origin, 4) Relatively Inelastic with an elasticity between 0 and 1 shown as a steep curve, and 5) Perfectly Inelastic with an elasticity of 0 shown as a vertical line.

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    Graphical Representation of Price Elasticity of Supply and Five Elasticity Alternatives of Supply Curve

    1. Perfectly Elastic: The coefficient of elasticity for this


    alternative is E = ∞. It's a perfectly elastic supply
    curve, which is horizontal and intersects the vertical
    price axis.

    2. Relatively Elastic: The coefficient of elasticity for


    this alternative is in the range of 1 < E < ∞.It's elastic
    supply curve, which is flat but not horizontal and
    intersects the price axis.

    3. Unit Elastic: The coefficient of elasticity for "Unit


    Elastic" is in the range of E = 1. It reveals a unit elastic
    supply curve, which is a straight line extending from
    the origin. Means, If the coefficient is exactly one, the
    good is said to be unitary elastic. It can be said as if
    the supply curve is a straight line passing through the
    origin, then the price elasticity of supply will be
    equal to unity.

    4. Relatively Inelastic: The coefficient of elasticity for


    this alternative is in the range of 0 < E < 1. It's a
    relatively inelastic supply curve, which is steep but
    not vertical and intersects the quantity axis.

    5. Perfectly Inelastic: The coefficient of elasticity for this alternative is E = 0. It's a perfectly inelastic supply
    curve, which is vertical and intersects the horizontal quantity axis.

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