We appreciate your visit to Which of the following formulas is a correct expression of the price elasticity of supply e QΔQ1 ΔPP e3 ΔPΔQ1 QP e1 PΔP QΔQ3 e1. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
The correct expression of the price elasticity of supply is
e1 = ΔQs / ΔP * (P / Qs), where:
- e1 represents the price elasticity of supply
- ΔQs represents the change in quantity supplied
- ΔP represents the change in price
- P represents the initial price
- Qs represents the initial quantity supplied
This formula measures the responsiveness of the quantity supplied to a change in price. A value of e1 greater than 1 indicates elastic supply, meaning that a change in price leads to a relatively larger change in quantity supplied.
Conversely, a value of e1 less than 1 indicates inelastic supply, where a change in price results in a relatively smaller change in quantity supplied.
A value of e1 equal to 1 represents unitary elasticity, where the percentage change in quantity supplied is the same as the percentage change in price.
To learn more about elastic supply
https://brainly.com/question/33575949
#SPJ11
Thanks for taking the time to read Which of the following formulas is a correct expression of the price elasticity of supply e QΔQ1 ΔPP e3 ΔPΔQ1 QP e1 PΔP QΔQ3 e1. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
