Commerce Exam  >  Commerce Videos  >  Economics Class 11  >  Price Elasticity of Supply

Price Elasticity of Supply Video Lecture | Economics Class 11 - Commerce

75 videos|274 docs|46 tests

Top Courses for Commerce

FAQs on Price Elasticity of Supply Video Lecture - Economics Class 11 - Commerce

1. What is price elasticity of supply?
Ans. Price elasticity of supply is a measure of how responsive the quantity supplied of a good or service is to a change in its price. It indicates the percentage change in quantity supplied divided by the percentage change in price.
2. How is price elasticity of supply calculated?
Ans. Price elasticity of supply is calculated by dividing the percentage change in quantity supplied by the percentage change in price. The formula is: Price Elasticity of Supply = (% Change in Quantity Supplied) / (% Change in Price).
3. What factors affect the price elasticity of supply?
Ans. Several factors can affect the price elasticity of supply. These include the availability of inputs, the time period under consideration, the ability to switch production methods, the degree of spare capacity, and the ability to store or stockpile the product.
4. What does a high price elasticity of supply indicate?
Ans. A high price elasticity of supply indicates that the quantity supplied is highly responsive to changes in price. In other words, a small change in price leads to a relatively larger change in quantity supplied. This suggests that suppliers are able to quickly and easily adjust their production levels in response to price changes.
5. What does a low price elasticity of supply indicate?
Ans. A low price elasticity of supply indicates that the quantity supplied is not very responsive to changes in price. In other words, a change in price leads to a relatively smaller change in quantity supplied. This suggests that suppliers are not able to easily or quickly adjust their production levels in response to price changes.
75 videos|274 docs|46 tests
Explore Courses for Commerce exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Price Elasticity of Supply Video Lecture | Economics Class 11 - Commerce

,

Extra Questions

,

Important questions

,

Free

,

Summary

,

MCQs

,

video lectures

,

Semester Notes

,

pdf

,

Exam

,

Sample Paper

,

Viva Questions

,

study material

,

practice quizzes

,

ppt

,

Objective type Questions

,

shortcuts and tricks

,

Previous Year Questions with Solutions

,

Price Elasticity of Supply Video Lecture | Economics Class 11 - Commerce

,

past year papers

,

mock tests for examination

,

Price Elasticity of Supply Video Lecture | Economics Class 11 - Commerce

;