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Elasticity of Supply : A measure of how responsive the quantity supplied of a given good is to changes in its price. This is from the video “ Elasticity of Supply

Elasticity of Supply: A measure of how responsive the quantity supplied of a given good is to changes in its price. This is from the video “Elasticity of Supply” in the Principles of Microeconomics course.

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The elasticity of supply measures how responsive the quantity supplied is to a change in the price. So it's almost the same as the elasticity of demand except instead of measuring the responsiveness of the quantity demanded, it measures the responsiveness of the quantity supplied to a change in price. A supply curve is said to be elastic when an increase in price increases the quantity supplied by a lot. And similarly vice versa, that is when a decrease in price decreases the quantity supplied by a lot then we say that the supply curve is elastic. So when the quantity supplied is very responsive to the price, we say the supply curve is elastic. When the same increase price increases the quantity supplied by just a little then the supply curve is said to be inelastic. So when the quantity supplied doesn't vary very much with the price, the supply curve is inelastic.

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