What is price elasticity of supply?
Price elasticity of supply is a measure of the degree of change in the supplied amount of commodity in response to the change in the commodity’s price. In simple words, it can be defined as the rate of change in supply in response to a price change. It is denoted as P or Es. Methods for Measuring Price Elasticity of Supply Basically, price elasticity of supply can be measured by two methods. These methods are

  • Mathematical method/ Percentage method,
  •  Geometric method,

Mathematical method/ Percentage Method Percentage method or proportionate method is the commonly used method of measuring price elasticity of supply. 
Price elasticity of Supply= Proportion Change in quantity supplied / Proportion change in price of commodity
Price elasticity of Supply= %Change in quantity supplied /%change in price of commodity

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