ECON-200 Lecture 8: Introduction to Economics - Lecture 8
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18 Sep 2020
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The slope of the supply curve is closely related to price elasticity of supply. Rule of thumb: the flatter the curve, the bigger the elasticity, the steeper the curve, the smaller the elasticity. The next five slides present the classifications for supply curves from least to most elastic. Price elasticity of supply=% change in qs% change in p=0%10%= 0price elasticity of supply= % change in qs% change in p=0%10%= 0. Price elasticity of supply=% change in qs% change in p=<10%10%= <1price elasticity of sup ply=% change in qs% change in p=<10%10%= <1. Price elasticity of supply=% change in qs% change in p=10%10%= 1price elasticity of supply. =% change in qs% change in p=10%10%= 1. Price elasticity of supply=% change in qs% change in p=>10%10%= >1price elasticity of sup ply=% change in qs% change in p=>10%10%= >1. Price elasticity of supply=% change in qs% change in p=any %0%= price elasticity of supply=% change in qs% change in p=any %0%= .
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