Question

elabrote  the term Elasticity of Supply

Answer 1

Elasticity of supply is a measure of receptiveness to the supply of a service or product following a change in the market price of the service or product. It is considered to be the percentage change in supply relative to the percentage change in price. When calculating the elasticity of supply, the following formula is used:

Elasticity of Supply = Percentage change in supply /Percentage change in price