ABSTRACT
Price elasticity of supply Elasticity of supply measures the responsiveness of supply to a change in price. This relationship may be expressed as a formula:
Exhibit 5.1 shows a worked example of how to calculate elasticity of supply.
Price elasticity of supply Elasticity of supply measures the responsiveness of supply to a change in price. This relationship may be expressed as a formula:
Exhibit 5.1 shows a worked example of how to calculate elasticity of supply.