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price elastically economics

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  • price elastically economics

    Elasticity of supply and time period
    Elasticity of supply changes with changing time
    1. In the market period the elasticity of supply is zero. The period of time is
    so short that the industry does not have any time to change the supply for
    any change in the price.
    The market period is in turn defined as the shortest time period where the
    supply is perfectly in elastic.
    2. In the short run the supply becomes relatively elastic. The industry gets
    time to make changes in the variable factors of production and change
    production in a limited range.
    3. Long run is that time period where the industry has enough time to change
    the fixed factors as well and bring large changes in the out put.
    The supply will be highly elastic in the long run.
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