Principles of Microeconomics / Unit 4 MIC 0316 short lesson, about 20 seconds
Price Elasticity of Supply
Captions available
The idea
Price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price. It is positive, and the three classes apply: elastic above one, inelastic below, unitary at one.
In practice
Pencils are elastic in supply; prime waterfront apartments are inelastic.
Where people slip
Supply elasticity depends on how easily inputs are found and production expanded, not on what buyers want.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it