Distinguish between Perfectly Elastic, Perfectly Inelastic, Unit Elastic, Inelastic and Elastic supply curves with the help of diagrams.
Introduction Elasticity of supply measures the responsiveness of quantity supplied to changes in price. Based on this responsiveness, supply curves are classified as perfectly elastic, perfectly inelastic, unit elastic, elastic, and inelastic. Each has unique graphical representations and implications in economic theory. Perfectly Elastic Supply A perfectly elastic supply means that suppliers will supply any […]