elasticity of supply

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Elasticity of supply

The degree of producers' responsiveness to price changes. Elasticity is measured as the percent change in quantity divided by the percent change in price. A large value (greater than 1) of elasticity indicates sensitivity of supply to price, e.g., luxury goods, where a rise in price causes an increase in supply. Goods with a small value of elasticity (less than 1) have a supply that is insensitive to price, e.g., food, where a rise in price has little or no effect on the amount that producers supply.

Elasticity of Supply

The relative stability of a security's or product's supply in the face of increased or decreased price. Typically, an increased price results in greater supply because fewer people are buying the product; these products are considered inelastic. For example, Rolex watches are considered inelastic because a higher price results in fewer people purchasing the watches, which, in turn, results in an increased supply. On the other hand, staple products like food and clothing are considered elastic because an increased price does not necessarily lead to more supply. This is because people continue to buy food and (some) clothing. See also: Elasticity of demand.

elasticity of supply

the degree of responsiveness of quantity supplied of a particular product (see SUPPLY) to changes in the product's PRICE (PRICE-ELASTICITY OF SUPPLY).
References in periodicals archive ?
The authors find that the aggregate labor supply elasticity of such an economy is around one, bigger than micro estimates but smaller than those often assumed in aggregate models.
In particular, using model parameters values based upon actual empirical evidence leads to a small intertemporal elasticity of substitution between consumption and leisure, and hence, a small labor supply elasticity (i.
the tariff decreases vulnerability if the short-run oil supply elasticity is low, but increases vulnerability if the short-run supply elasticity is more than 1.
Section 4 considers the model with a bounded labour supply elasticity.
Raising or lowering the supply elasticity, on the other hand, has no effect on any of the variables of interest, so the model is quite robust with respect to changes in this parameter.
It is therefore more difficult to estimate the welfare effects of shale gas if the supply elasticity and drilling elasticity do not line up.
Two estimates of the labor supply elasticity are also used, 0.
This is an appropriate approach, since a simple supply elasticity would not give the information needed to calculate changes in exports.
where Z is the occupancy elasticity (equal to the short-run supply elasticity [E.
13) Only positive values are given for the factor supply elasticity [TABULAR DATA OMITTED] with respect to the price of the imported good, since according to the data set in Wigle [13], imports into Canada are relatively labor-intensive.
And, since industrial share tends to move counter to price, national forest supply elasticity may approach or even exceed that for industrial owners.