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Price Elasticity Of Supply
- 1. MR. REY BELEN PRICE ELASTICITY OF SUPPLY
- 4. The coefficient of price elasticity of supply is defined as: Remember: Es = coefficient of price elasticity Q D = Quantity Supplied P = Price The coefficient of price elasticity of supply is equal to the percentage change in quantity supplied divided by the percentage change in price. WHERE:∆Qs = QS2 – QS1 ∆ P = P2 – P1 %∆Qs = Qs2 – Qs1 Qs Qs = Qs2 + Qs1 2
- 5. RANGES OF ELASTICITY: Supply
- 7. Figure 1. Elastic Supply Curve PRICE P1 P2 0 Q1 Q2 S QUANTITY
- 9. Figure 2. Inelastic Supply Curve PRICE P1 P2 0 Q1 Q2 S QUANTITY
- 11. Figure 3. Unitary Supply Curve PRICE P1 P2 0 Q1 Q2 S QUANTITY
- 13. Figure 4. Perfectly Elastic Supply Curve PRICE P1 0 S QUANTITY
- 15. Figure 5. Perfectly Inelastic Supply Curve PRICE P1 P2 0 S QUANTITY