AElasticity means the effect on the demand or supply when the price of good change called elasticity
ELASTICITY:-
Elasticity varies from product to product. If the elasticity of good high it means the change in price effect sharp change in the quantity demanded or supplied.
INELASTIC:-
INELASTIC means the change in prices of good will not effect quantity demanded or supplied.
To determine the elasticity of the supply
Elasticity=(%change in quality/%change in price)
If the elasticity is greater than or equal to 1 the curve is considered to be elastic.
If it is less than one the curve is said to elastic.
The graph will be flatter or more horizontal it small change in price effect large change in production of the goods
In inelastic large change in price will not effect that much on price.
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