AP Microeconomics / Unit 2: Supply and Demand
2.4 Price Elasticity of Supply
Notes
$$E_s=\frac{\%\Delta Q_s}{\%\Delta P}$$
- Supply is more elastic with more time and easier ways to increase production.
Practice
Price rises 10% and quantity supplied rises 5%. $E_s=$
Inelastic.
Supply is usually more elastic in the:
Time to adjust.
The supply of original paintings by a famous dead artist is:
Can't make more.
Ready for more? Take the Unit 2 test.