Elastic demand

C

unit elasticity

Q

Fig.8. Elasticity of demand

The concept of elasticity of supply of goods characterizes the relative changes in the prices of commodities and quantities offered for sale.

The price elasticity of supply acts as a direct linear relationship between economic variables show percentage change in price, and they let out a particular percentage change in volume of goods offered for sale.

Р unit elasticity

elastic supply

inelastic supply

0 Q