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Elasticity of Supply

Elasticity of Supply. Elasticity of supply. How responsive is supply to a change in price? Will supply change a lot when prices change or a little? Can you guess what it is called when supply changes greatly with price? When supply changes a little with price?. Elasticity of supply

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Elasticity of Supply

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  1. Elasticity of Supply

  2. Elasticity of supply • How responsive is supply to a change in price? Will supply change a lot when prices change or a little? Can you guess what it is called when supply changes greatly with price? When supply changes a little with price?

  3. Elasticity of supply • Elastic Supply Inelastic supply big change little change in supply in supply

  4. Elasticity of supply • Elastic Supply • Can change supply quickly to meet the demand of the consumer • 1. made quickly • 2. inexpensive to make • 3. using few resources – that are readily available • Inelastic Supply • Can not change easily to meet the demand of the consumer • 1. takes more time to produce the product • 2. takes more money to produce the product • 3. the resources are not as available, maybe scarce

  5. Examples – elastic or inelastic?

  6. YOUR TURN! • Get with a partner and add your own elastic example and inelastic example!! Be ready with your example if I call on you to share!

  7. Perfectly Inelastic When you CAN NOT change supply!! Producers would like to make more available, but it is not possible. EX – seats on an airplane

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