Answer to Question #240931 in Economics for CCW

Question

Economics Chp. 4

Make visual notes, acronyms, and symbols to make definitions visual

9) Elasticity of supply -

10) elastic supply -

Answer 1

The elasticity of supply is a measure of the responsiveness of quantity proposals for changing the price of goods. It is defined as the ratio of the relative change in the value of the supply of goods to the relative change in price.

Supply Elastic - a situation in the market in which the amount of supply directly affects the price change.