TARUM|THA P/p BaskARAN Demi 2 vo Sunny O1DemDiFIoU! baie 28 Wv]ad- Eno Or Cuapter 2 SET I- Question 4. 9) Fine factors th affecting the price elasticity f supply te production cocts. The eupply of goods is fee? aa te costs are _requirel to increase production and the Supply of goode is inelastic when emall_casts are required 40 [increase ty production. ___ Suordly, availavility and mobility of factore sf preductin-The 2 ‘Cuppy oF goods tc inelastic rf the factore of production necessary : Aor_production OF the gods ane \imited in cupply and cannot be obtained easily and tre supply of goods is elastic (F tte factor @ _—_of_ production necessary for pretuction uf goods are readily — available and easily obinired. Moreover ,time period - Time period _ can divide jnjo two which is \n tho short term and In tte | long term. |n the ghort term, Supply tends +o be Inelastic . This if due 40 insufficient availability Pine to organize and ad(ust ng term, Supply is moe elastic -Selletr are ein price sine trey can adjust their Following that , nature of We market. When sold in diferent markets , supply te more elastic price fall in ore market Con be mode goods tn Other _markets: Lact but not least , perishabrity. pertshability _| can be divided into two groupe , perishable product? and~lece ——perishat e products Porishdble preduct? , supply rs inelastic. Changes | 1M price do not affect Suppiy much becawe tre tellers cannot _ “store perishable products for long periods of time. Meanwhil lese_perishable product! can be defined os ¢upply te more Chastic. If the seller expect _a_price inet J ___ mothe, the seller may store these producte oe ae i: aNo. Dt ») |i) @1-@o Po S fi) Op) - Qe Pa Pi-Po Go PAy - Pa Qe A demand curve is caid to be _ inelastic when © CEdcl. It Means , the percentage change in the quantity demanded of gcods AxiA 'S Smaller compare __ to the percentage change jn {the Exprigen) GiGi Tis ae 11)sabia Po BASKARAN Pm) Ke no SUNDAY Olvpmai flout. nw 244u/a4. a eerueNe A o. | a) ie Pree elasticrty oF demand can be define as Tt meosvres how much — the quantity demanded oP a 4000 changet when TH price changer - oa To _caleulate, price ela of demand , percentage nange in ue ees demanded divide by percentage change in price: i: Price dlastict ty | Pe ae the responsiveness or sensitivity of the fea gate due toa change In the price. To calewate @ opr rice ce_elasticity oP eupply » percentage change Ih quantity. Suppliedl vs) oO x co é dea and coffee. Gpoos A 1 Q:-Qo io Y-Yo Qo FO-10 1200 1600-1200 _ 10 60» 400 ii) Becauce the value of crass elasticity 5 demands positive, qunds A and godt B ane Subetrtude goods. For instance, substitude goods are emis, Gs Goods B- Qi- Qo Yo. 50-86 1200 609-1200 8s