Determining the Price Elasticity of Supply and indicating whether it is elastic, inelastic, perfectly elastic or perfectly inelastic. then pls rounding off your answers to two decimal places POINT PRICE (P) QUANTITY SUPPLIED. A 55 100 B 45 85

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? Elasticity of Supply Supply elasticity refers to the reaction or response of the sellers or producers to price changes of goods sold. In other words, it is a measure of the degree of responsiveness of supply to a given change in price. Moreover, it is the percentage change in quantity supplied given a percentage change in price. Thus,

\\\"o' n em. 25%a11:36 pm Read Only - You can't save changes to this... v E _ AQuantity supplied ' _ APrice or 032 051 E-JL 5 P2 P1 P1 'rice elasticity of Supply can then be interpreted using the matrix below: cient Responsiveness Elastic goods are usually viewed as luxury items. An increase in price for an elastic good has impact on consumption. The good is viewed as something that individuals are willing to sacrifl save money. Inelastic goods are often described as necessities. A shift in price does not drastically imp: demand or the overall supply of the good because it is not something people are able or willing Supply is perfectly inelastic. There is no change in quantity if prices change. Supply is perfectly elastic. A decrease in prices will lead to zero units produced. ce Elasticity of Supply and indicate whether it is elastic, inelastic or unitary. POINT QUANTITY (Q) PRICE (P) A 135 355 B 145 350 Point AB QzQ E _ 081 5 P2 P, P: 145135 E 07 50 = 3% = 1.55; = $ = I7I =T(elastic) as: E