Negative Price Elasticity of Supply
(Redirected from Inelastic Supply Score)
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An Negative Price Elasticity of Supply is a price elasticity of demand value with a inelastic score.
- AKA: Inelastic Supply.
- Context:
- It can (typically) be a Typical Value.
- It can range from being a Price Elastic Demand ([math]\displaystyle{ \lt-1 }[/math]) to being a Price Inelastic Demand ([math]\displaystyle{ \gt-1 }[/math]).
- Example(s):
- Counter-Example(s):
- See: Price Elasticity Curve, Law of Demand, Inelastic Demand, Elastic Supply.
References
2014
- https://lumen.instructure.com/courses/196787/pages/Section8-18?module_item_id=4541557
- QUOTE: The concept of price elasticity of supply can be applied to labor to show how the quantity of labor supplied responds to changes in wages or salaries. What makes this case interesting is that it has sometimes been found that the measured elasticity is negative, that is, that an increase in the wage rate is associated with a reduction in the quantity of labor supplied.
… When applied to labor supply, the price elasticity of supply is usually positive but can be negative. If higher wages induce people to work more, the labor supply curve is upward sloping and the price elasticity of supply is positive. In some very high-paying professions or other unusual circumstances, the labor supply curve may have a negative slope, which leads to a negative price elasticity of supply.
- QUOTE: The concept of price elasticity of supply can be applied to labor to show how the quantity of labor supplied responds to changes in wages or salaries. What makes this case interesting is that it has sometimes been found that the measured elasticity is negative, that is, that an increase in the wage rate is associated with a reduction in the quantity of labor supplied.