- Flexibility of Inputs: If the inputs are irreplaceable, in their absence the elasticity of supply is relatively less than a company that has the inputs readily available. Example: a)"Hotel chef " is an input which can't be substituted unlike the server in a restaurant. b) Pilot vs Cabin crew.
- Mobility of Inputs: If inputs are transferable from one use to another, it will affect the elasticity of supply. Higher the mobility, greater the elasticity of supply of goods & lower the mobility, lesser the elasticity of supply of goods.
- Durability: Goods which can be stored or not perishable have relatively elastic supply than goods which are perishable.
- Time: If price of goods increase & producer have sufficient time to increase their output then supply is more elastic, if time period is short & no time to increase output then supply is inelastic.
- Ability to produce substitute inputs: If a fixed quantity of inputs can be overcome, then the elasticity of supply is higher & vice versa.
Economics when applied to real life sounds beautiful. this blog is for those students who are discovering the different facets of economics applications and want to share their discoveries.
Saturday, July 21, 2018
Supply Sensitivity to non-price factors
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment