Define elasticity of supply, Macroeconomics

Assignment Help:

Define elasticity of supply. What factors influence Elasticity of Supply?

There is only one type of identifiable elasticity of supply measuring the responsiveness of market supply to changes in the price of the product. Factors- 1. Time factor- There are three supply periods based on the time factors he Momentary period, short period and the long period. In the momentary time period, the elasticity supply is zero 2. Ability to store the product- The product which can be stored for a longer periods are more able to react the price rises by releasing stocks or to price falls by building up stocks 3. Barrier to entry- Some industries restricts the entry of new firms into the market and this influences the responsiveness of supply to changes in price 4. The behavior of costs as output changes- If costs rise supply as output rises so that there are heavy costs involved in purchasing extra factors of production.


Related Discussions:- Define elasticity of supply

Elasticity of demand questions need to be done in graphs, To really underst...

To really understand it, compute the following price elasticities of demand: ·          The price of a laptop increases by 20% and there is a 40% drop in the quantity dem

Determined at the intersection of the money demand, Consider the supply of ...

Consider the supply of money graph above. Which of the following can be determined at the intersection of the Money Demand and Money Supply curves? The rate of open market transact

Planning activities, What are the different stages of analysis in planning ...

What are the different stages of analysis in planning activities?

Keynesian theory, what is static and dynamic multiplier in keynesian theory...

what is static and dynamic multiplier in keynesian theory?

Determine the concept of money supply, Assume that the required reserve rat...

Assume that the required reserve ratio is 0.12 for deposits & there are no excess reserves. Assume that the total demand for currency is equal to 0.3 times deposits. a) If t

Absolute advantage and comparative advantage, Differences between absolute ...

Differences between absolute advantage and comparative advantage?              Ans) Absolute benefit and comparative benefit are two basic concepts to international trade. Under

Compare money with wealth and income, Compare Money with wealth and income ...

Compare Money with wealth and income Money isn't the same as wealth. An individual may be very wealthy however have no money (for instance by owning stocks and real estate). An

How did economists get it so wrong, Read "How Did Economists Get It So Wron...

Read "How Did Economists Get It So Wrong" by Paul Krugman and second, the blog "History of Economics Playground", by Pedro Duarte, Tiago Mata, Clement Levallois, Yann Grd...etc., t

Illustrate the definition of money, Definition of Money We should defi...

Definition of Money We should define what we mean by money. Money has a long as well as interesting history and an understanding of how we came to use money is useful for any

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd