question archive Why is supply inelastic, and how do we know that supply is inelastic?
Why is supply inelastic, and how do we know that supply is inelastic?
Subject:EconomicsPrice:2.88 Bought3
Why is supply inelastic, and how do we know that supply is inelastic?
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Price elasticity of supply measures the responsiveness of quantity supplied by producers, given a small change in price for supplying whatever the good or service is in which they're supplying.
Supply is inelastic when a given percentage change in price leads to a proportionally smaller percentage change in quantity supplied. Algebraically, we can write this as when [Math Processing Error]
