Economics Supply And Demand Questions
The different types of price elasticity of supply are:
1. Perfectly elastic supply: This occurs when a small change in price leads to an infinitely large change in quantity supplied. In this case, the supply curve is horizontal.
2. Perfectly inelastic supply: This occurs when a change in price has no effect on the quantity supplied. In this case, the supply curve is vertical.
3. Unitary elastic supply: This occurs when a change in price leads to an equal percentage change in quantity supplied. In this case, the supply curve is a straight line with a constant slope.
4. Relatively elastic supply: This occurs when a small change in price leads to a proportionately larger change in quantity supplied. In this case, the supply curve is upward sloping but not as steep.
5. Relatively inelastic supply: This occurs when a change in price leads to a proportionately smaller change in quantity supplied. In this case, the supply curve is upward sloping but relatively steep.