Question

What are the types of elasticity of supply?

Answer 1

There are five types of elasticity of supply

1. Relatively Elastic Supply:
The coefficient of elastic supply is greater than 1 [E_S >1]. One percent change in the price of a commodity causes more than one percent change in the quantity supplied of the commodity.

2. Unitary Elastic Supply.
The co – efficient of elastic supply is equal to 1 [E_S = 1]. One percent change in the price of a commodity causes an equal [one percent ] change in the quantity supplied of the commodity.

3. Relatively Inelastic Supply:
The co – efficient of elasticity is less than one [E_S < 1], One percent change in the price of a commodity causes a less than one percent change in the quantity supplied of the commodity.

4. Perfectly Inelastic Supply:
The co – efficient of elasticity is equal to zero [E_S = 0], One percent change in the price of a commodity causes no change in the quantity supplied of the commodity.

5. Perfectly Elastic Supply:
The co – efficient of elasticity of supply is infinity [E_S – α]. One percent change in the price of a commodity causes an infinite change in the quantity supplied of the commodity.