Economics Elasticity Of Supply Study Cards

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Elasticity of Supply

A measure of how responsive the quantity supplied of a good or service is to changes in its price.

Price Elasticity of Supply

A measure of the responsiveness of the quantity supplied to changes in price.

Determinants of Elasticity of Supply

Factors that influence the degree of responsiveness of the quantity supplied to changes in price, including production time, availability of inputs, and flexibility of production processes.

Perfectly Elastic Supply

A situation where a small change in price leads to an infinitely large change in quantity supplied.

Perfectly Inelastic Supply

A situation where quantity supplied does not respond to changes in price.

Unitary Elastic Supply

A situation where the percentage change in quantity supplied is equal to the percentage change in price.

Cross Elasticity of Supply

A measure of the responsiveness of the quantity supplied of one good to changes in the price of another good.

Income Elasticity of Supply

A measure of the responsiveness of the quantity supplied to changes in income.

Applications of Elasticity of Supply

The use of elasticity of supply in various economic analyses, such as determining the impact of taxes on supply and predicting the effects of changes in input prices.

Factors Affecting Elasticity of Supply

Various factors that influence the elasticity of supply, including the availability of substitutes, time horizon, and the proportion of production costs to total costs.

Elasticity Coefficient

A numerical measure of the responsiveness of quantity supplied to changes in price, calculated as the percentage change in quantity supplied divided by the percentage change in price.

Elastic Supply

A situation where a small change in price leads to a relatively large change in quantity supplied.

Inelastic Supply

A situation where quantity supplied does not respond significantly to changes in price.

Perfectly Elastic Supply Curve

A horizontal supply curve indicating a perfectly elastic supply, where any change in price results in an infinite change in quantity supplied.

Perfectly Inelastic Supply Curve

A vertical supply curve indicating a perfectly inelastic supply, where quantity supplied remains constant regardless of changes in price.

Unitary Elastic Supply Curve

A supply curve with a constant slope, indicating a unitary elastic supply where the percentage change in quantity supplied is equal to the percentage change in price.

Cross Elasticity of Supply Curve

A curve showing the relationship between the quantity supplied of one good and the price of another good, indicating the cross elasticity of supply.

Income Elasticity of Supply Curve

A curve showing the relationship between the quantity supplied and income, indicating the income elasticity of supply.

Elasticity of Supply and Taxes

The impact of taxes on the elasticity of supply, where higher taxes tend to reduce the elasticity of supply.

Elasticity of Supply and Input Prices

The effects of changes in input prices on the elasticity of supply, where higher input prices tend to reduce the elasticity of supply.

Elasticity of Supply and Substitutes

The influence of the availability of substitutes on the elasticity of supply, where more substitutes tend to increase the elasticity of supply.

Elasticity of Supply and Time Horizon

The impact of the time horizon on the elasticity of supply, where longer time horizons tend to increase the elasticity of supply.

Elasticity of Supply and Production Costs

The relationship between the proportion of production costs to total costs and the elasticity of supply, where higher production costs tend to reduce the elasticity of supply.

Elasticity of Supply and Market Equilibrium

The role of elasticity of supply in determining market equilibrium, where a more elastic supply tends to result in a larger change in quantity and a smaller change in price.

Elasticity of Supply and Price Controls

The effects of price controls on the elasticity of supply, where price ceilings tend to reduce the elasticity of supply and price floors tend to increase it.

Elasticity of Supply and Technology

The influence of technological advancements on the elasticity of supply, where improved technology tends to increase the elasticity of supply.

Elasticity of Supply and Government Regulations

The impact of government regulations on the elasticity of supply, where stricter regulations tend to reduce the elasticity of supply.

Elasticity of Supply and Market Competition

The relationship between market competition and the elasticity of supply, where more competition tends to increase the elasticity of supply.

Elasticity of Supply and Profit Maximization

The role of elasticity of supply in profit maximization, where firms aim to produce at the quantity where marginal cost equals marginal revenue.

Elasticity of Supply and Price Elasticity of Demand

The relationship between the elasticity of supply and the price elasticity of demand, where a more elastic supply tends to result in a larger change in quantity and a smaller change in price.

Elasticity of Supply and Elasticity of Substitution

The influence of the elasticity of substitution on the elasticity of supply, where a higher elasticity of substitution tends to increase the elasticity of supply.

Elasticity of Supply and Market Dynamics

The effects of changes in supply elasticity on market dynamics, including price volatility and shifts in market equilibrium.

Elasticity of Supply and Price Discrimination

The use of elasticity of supply in price discrimination strategies, where firms charge different prices to different customer segments based on their willingness to pay.

Elasticity of Supply and Market Power

The relationship between market power and the elasticity of supply, where firms with more market power tend to have a less elastic supply.

Elasticity of Supply and Market Efficiency

The impact of the elasticity of supply on market efficiency, where a more elastic supply tends to result in a more efficient allocation of resources.

Elasticity of Supply and Price Elasticity of Supply

The relationship between the elasticity of supply and the price elasticity of supply, where a more elastic supply tends to have a higher price elasticity of supply.

Elasticity of Supply and Consumer Surplus

The effects of changes in supply elasticity on consumer surplus, where a more elastic supply tends to result in a larger consumer surplus.

Elasticity of Supply and Producer Surplus

The influence of changes in supply elasticity on producer surplus, where a more elastic supply tends to result in a smaller producer surplus.

Elasticity of Supply and Deadweight Loss

The impact of changes in supply elasticity on deadweight loss, where a more elastic supply tends to result in a smaller deadweight loss.

Elasticity of Supply and Market Failure

The relationship between the elasticity of supply and market failure, where a less elastic supply can contribute to market failures such as shortages or surpluses.

Elasticity of Supply and International Trade

The effects of changes in supply elasticity on international trade, where a more elastic supply tends to result in a larger volume of trade.

Elasticity of Supply and Resource Allocation

The influence of changes in supply elasticity on resource allocation, where a more elastic supply tends to result in a more efficient allocation of resources.

Elasticity of Supply and Price Stability

The impact of changes in supply elasticity on price stability, where a more elastic supply tends to result in more stable prices.