Defined: % change in Q supplied, per unit change in price.
· %(Change)Qs/%(Change)P
· Determinants
· Time: more, more elastic (easier production adjustments)
· Ability of firms to change production levels: the easier, the greater the elasticity.
· Ability of firms to change production levels
Measuring Supply Elasticity
· Usually across an arc; values from 0 to (infinity)
· Constant elasticity: for limiting cases.
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