Ask Question
BusinessBusiness
2 May, 10:59

How does the quantity supplied of a good with a large elasticity of supply react to a price change

+3
Answers (2)
  1. 2 May, 11:05
    0
    If quantity supplied of a good has a large elasticity of supply (greater than one) then the reaction is elastic.

    Explanation:

    Elasticity of supply refers to the response that is generated by the manufacturers or producers about the price of the product based on the quantity that is demanded. When the prices of any goods or services increases the supply also increases.

    It is the relationship between the quantity of the goods and devices that is supplied to the price changes of that goods or services. Elasticity of the supply refers ratio of the change in the quantity of goods and services that is being supplied to the percentage change in price of that product or services. If quantity supplied of a good has a large elasticity of supply (greater than one) then the reaction is elastic.
  2. 2 May, 11:24
    0
    The quantity supplied of a good with a large elasticity of supply react to a price change as "it will be very sensitive to price change".

    Explanation:

    Producer tolerance to shifts in the quality of its goods or services. Generally speaking, if prices rise the supply does so. Supply elasticity is calculated as the ratio of proportionate variability in the quantity delivered to the proportionate price change.

    The amount given of a good with a high supply elasticity dramatically responds to a change in price. A small price increase induces a large supply increase and a small price decline triggers a significant supply drop. Supply elasticity is an indicator of an industry or a producer's sensitivity to price fluctuations for its product. Also considerations are the availability of critical resources, technological innovation and the number of rivals that create a product or service.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “How does the quantity supplied of a good with a large elasticity of supply react to a price change ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A speaker says, "because the japanese make the best stereo sound systems in the world, you should consider buying a japanese-made sound system." this speaker is guilty of using which kind of fallacy in reasoning?
Answers (1)
A hospital revenue bond issue is being underwritten on a negotiated basis. The offering consists of $100,000,000 par value of term bonds. The underwriter has agreed to a spread of $50.00 for each $5,000 bond.
No Answers
Communication among managers in angela's business was slowing down the pace of planning and organizing, so angela recently merged some of the company's departments and cut back on the number of levels of managers.
Answers (1)
What is the extractive industry?
Answers (1)
Which of the following funds of a governmental unit uses the same basis of accounting as an enterprise fund? a. Special revenue. b. Internal service. c. Permanent trust. d. Capital projects.
Answers (1)
New Questions in Business
The accounting cycle starts with a. closing out the periodic accounts. b. recording the transaction based on the information in a source document. c. preparing the financial statements. d. preparing the adjusting entries.
Answers (1)
Ratemakers at ABC Insurance Company calculated the pure premium to be $280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratioA) $364 B) $400 C) $430 D) $520
Answers (1)
When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values. true or false
Answers (1)
What are the security and management issues concerning virtual offices, especially hooked up into large virtual networks?
Answers (1)
Burns Industries currently manufactures and sells 20.000 power saws per month, although it has the capacity to produce 35,000 units per month.
Answers (1)
Home » Business » How does the quantity supplied of a good with a large elasticity of supply react to a price change
Sign Up Forgot Password?