Elasticity

of
Supply
Meaning

Elasticity of supply is the responsiveness of

the quantity supplied of a commodity to
changes in its price.
Degrees of Elasticity of Supply

(i) Es = ∞ Perfectly Elastic

Change in supply and price remains same
(ii) Es = 0 Perfectly Inelastic
Change in Price but supply remains same
(iii) Es = 1 Unitary Elastic
Change in Supply = Change in price
(iv) Es > 1 Elastic
Change in Supply > Change in price
(v) Es < 1 Inelastic
Change in Supply < Change in price
 Factors affecting
Price elasticity of supply

(i) Nature of Input Used

(ii) Natural Constraints
(iii) Risk Taking
(iv) Nature of a Good
(v) Cost of Production
(vi) Time Factor
(vii) Technique of production