Economics · Unit 3
Supply and Elasticity of Supply
Exam-focused notes for Supply and Elasticity of Supply (Economics, ECO155): what the TU syllabus asks and how it has actually been tested, with 1 solved past questions from this unit.
What this unit covers
- Definition of supply and supply schedule
- Determinants of supply
- Elasticity of supply definition and types
- Measurement of elasticity of supply
Elasticity of supply definition and types
208010 marks
Define elasticity of supply. What are the various types of elasticity of supply? Explain with diagrams.[10]
Elasticity of supply measures the responsiveness or sensitivity of the quantity supplied of a good to changes in its price. It indicates how much the quantity supplied changes in response to a percentage change in price. Mathematically: $$Es = \frac{\% \tex...
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