Price Elasticity of Supply Curve
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An Price Elasticity of Supply Curve is a price elasticity curve for a price elasticity of supply measure (with price elasticity of supply scores).
- Context:
- It can (typically) increase as suppliers reach Capacity Limits and find it hard to increase output in the Short Run.
- …
- Counter-Example(s):
- See: Graphical Representation, Price Elasticity of Supply.
References
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Price_elasticity_of_supply#Graphical_representation Retrieved:2015-4-27.
- It is important to note that elasticity and slope are, for the most part, unrelated. Thus, when supply is represented linearly, regardless of the slope of the supply line, the coefficient of elasticity of any linear supply curve that passes through the origin is 1 (unit elastic). [1] The coefficient of elasticity of any linear supply curve that cuts the y-axis is greater than 1 (elastic), and the coefficient of elasticity of any linear supply curve that cuts the x-axis is less than 1 (inelastic). Likewise, for any given supply curve, it is likely that PES will vary along the curve.
2012
- http://economicsgceopastanswers.blogspot.com/p/elasticity.html
- QUOTE: In the diagram below, the price elasticity of supply is high at low levels of demand (e.g. D1 and D2) but when demand is high, elasticity of supply is much lower (e.g. D4 and D5) – the main reason would be that at peak periods, suppliers reach capacity limits and find it hard to increase output in he short run.
- QUOTE: In the diagram below, the price elasticity of supply is high at low levels of demand (e.g. D1 and D2) but when demand is high, elasticity of supply is much lower (e.g. D4 and D5) – the main reason would be that at peak periods, suppliers reach capacity limits and find it hard to increase output in he short run.