Elasticity of Supply - Explained
What is Elasticity of Supply?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is Elasticity of Supply?
Elasticity of supply is the extent to which the supply of goods or services changes compared to a change in the price paid for those goods or services.
Like elasticity of demand, elasticity of supply is measured as the percentage change in supply compared with the percentage change in price.
An elastic good will undergo a higher percentage change in supply as a result of a lower change in price. An inelastic good will undergo a lower percentage change in demand compared with a higher percentage change in price.
Related Topics
- Elasticity
- Perfect, Zero, Infinite, and Constant Elasticity
- Elasticity of Demand
- Elasticity of Supply
- Price Elasticity of Supply and Demand
- Tax Incidence
- Cross Elasticity of Demand
- Cross-Price Elasticity of Demand
- Raising Prices Affect Revenue
- Price Sensitivity
- What is Elasticity and Tax Incidence?
- Short Run
- Elasticity of Savings
- Income Elasticity of Demand