elasticity of supply

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 ?
Parallel processing of cloud computing, elasticity of supply resource framework, the use of "divide and conquer" approach, through processing and parallel computing to solve large-scale computing resources as a metered service to provide quick support business use.
where [epsilon] and [delta] denote the price elasticity of market demand and the price elasticity of supply from the price leader's competitors.
Our constant elasticity of supply would have implied that marginal cost shifted down everywhere along the supply curve, rather than just for new wells, and therefore producers would have lost less.
The oil market has been fixated on the elasticity of supply to prices, as the outcome will strongly determine how much longer a global surplus lasts.
The price elasticity of supply for groundnuts is inelastic and approximately 0.
The study calculated a price elasticity of supply in the range of 0.
The price elasticity of supply is found to be relatively high: a 10 percent increase in the price that homeowners are willing to pay for coverage results in a 27 percent increase in the number of policies supplied.
Specifically, using the estimated elasticity of supply and demand, that is, 0.
Becker and his colleagues argue that more women than men currently go to college because women's elasticity of supply with respect to earnings is greater than men's.
s]/[GAMMA]) = p, so the market elasticity of supply is
Similarly, the elasticity of supply is computed like this:
The model developed in this article shows that three elasticities--the inframarginal elasticity of supply, the participation elasticity, and the demand elasticity--are critical to the setting of a two-part price when the monopoly and the monopsony powers of the aggregator are considered.