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

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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.
82 videos|278 docs|48 tests
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