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When there are many producers in a market and they compete with each other, the elasticity of supply will be:
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:
A vertical supply curve indicates that the elasticity of supply is:
If the elasticity of supply is infinite, the supply curve will be:
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:
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:
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:
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:
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?
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?
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?
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?
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?
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?
What is the concept of point elasticity used for measuring?
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What is the term 'demand' referring to?
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?
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?
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?
What is demand in relation to the price of a good?
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How is the quantity demanded usually expressed?
How is the quantity demanded usually expressed?
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What is true about the demand for a commodity with many substitutes?
What is true about the demand for a commodity with many substitutes?
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What is the market share of a firm?
What is the market share of a firm?
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What is the nature of the quantity demanded?
What is the nature of the quantity demanded?
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What is effective demand dependent on?
What is effective demand dependent on?
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What is true about the demand for a commodity with a high price elasticity?
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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