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When there are many producers in a market and they compete with each other, the elasticity of supply will be:
A vertical supply curve indicates that the elasticity of supply is:
If the elasticity of supply is infinite, the supply curve will be:
Price elasticity of supply refers to the change in responsiveness of quantity to a change in:
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The elasticity of supply is defined as the responsiveness of the quantity supplied of a good to a change in its:
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Elasticity of supply is measured by dividing the percentage change in quantity supplied by the percentage change in:
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When the elasticity of supply is zero, the supply curve will be:
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Which of the following is NOT a factor that affects the elasticity of supply?
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What is the graphical representation of the demand schedule?
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What type of relationship does the demand schedule depict between price and quantity demanded?
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What is the assumption about the price of related goods while drawing an individual's demand curve?
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What is the price elasticity of demand at the mid-point of a straight line demand curve?
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What is the concept of point elasticity used for measuring?
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What is the term 'demand' referring to?
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What is the term for the responsiveness of the quantity demanded of a good to a change in its price?
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What is the shape of the demand curve when the price elasticity of demand is constant?
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What is demand in relation to the price of a good?
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How is the quantity demanded usually expressed?
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What is true about the demand for a commodity with many substitutes?
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What is the market share of a firm?
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What is the nature of the quantity demanded?
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What is effective demand dependent on?
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What is true about the demand for a commodity with a high price elasticity?
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Study Notes
Elasticity of Supply
- If there are many producers in a market with high competition, the elasticity of supply will be more.
- A vertical supply curve parallel to the Y-axis exhibits zero elasticity of supply.
- If elasticity of supply is infinite, the supply curve will be parallel to the x-axis.
Price Elasticity of Supply
- Price elasticity of supply refers to a change in responsiveness of quantity to a change in price.
- It is defined as the responsiveness of the quantity supplied of a good to a change in its price.
- Measured by dividing the percentage change in quantity supplied of a good by the percentage change in price.
Demand
- A table representing different prices of a good and the corresponding quantity demanded per unit of time is called a demand schedule.
- The demand schedule depicts an inverse relationship between price and quantity demanded.
- A demand curve is a graphical presentation of the demand schedule.
Assumptions of Demand Curve
- All factors except the price of the commodity are assumed to remain the same while drawing an individual's demand curve for a commodity.
Price Elasticity of Demand
- In the case of a straight line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be 1.
- The concept of point elasticity is used for measuring price elasticity where the change in price is infinitely small.
Types of Goods
- If indifference curves are 'L'-shaped, two goods will be called perfect complementary goods.
Demand Definition
- Demand refers to the quantity of a good or service that buyers are willing and able to purchase at various prices during a given period of time.
Demand Characteristics
- Demand is the entire relationship between the quantity demanded and the price of a good, other things remaining the same.
- The quantity demanded is always expressed at a given price.
Market Share
- The demand for a firm's product when expressed as a percentage of industry demand signifies the market share of the firm.
Quantity Demanded
- The quantity demanded is a flow.
- Effective demand depends on desire, price, and other factors.
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