Price elasticity of supply

 

 

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Price elasticity of supply

 

Glossary of business

 

Definition of price elasticity of supply

 

Measures the responsiveness of supply to a given change in price. It is calculated by taking the percentage change in supply and dividing by the percentage change in price. If a good is elastic (a value for the elasticity of more than one), supply is considered to be responsive to changes in price, while if it is inelastic (a value of less than one) then supply is unresponsive to changes in price.

 

Source : http://business-tes.wikispaces.com/file/view/Glossary.doc

link: http://business-tes.wikispaces.com/

Author : not indicated on the source document of the above text

 

Terminology about business

 

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Definition and meaning of price elasticity of supply

 

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