Define elasticity of supply.

Economics Elasticity Of Supply Questions



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Define elasticity of supply.

Elasticity of supply is a measure of the responsiveness of the quantity supplied of a good or service to a change in its price. It indicates how much the quantity supplied changes in proportion to a change in price. A high elasticity of supply means that the quantity supplied is highly responsive to price changes, while a low elasticity of supply indicates that the quantity supplied is not very responsive to price changes.