What are the 5 Different Types of Elasticity of Supply? – Explained!
Different producers respond differently to a given change in the price of a commodity. Elasticity of supply explains reactions of producers to a particular change in price.There are five types of elasticity of supply: (1) Perfectly Elastic (Es =?): Supply of a commodity is said to be perfectly elastic, when the supply changes to any extent irrespective of any change in its price. It means that at a price, any quantity of the good can be supplied. But, at a slightly lower price, the firm will not sell at all. It is purely an imaginary concept and can only be explained with the help of an imaginary supply schedule. ADVERTISEMENTS: In this case, the elasticity of supply is infinity and the supply curve is a straight line parallel to the…