Some items are elastic and some are inelastic, depending on whether or not they are easily produced and manufactured. ELASTICITY Elasticity is a term widely used in economics to denote the “responsiveness of one variable to changes in another.” In proper words, it is the relative response of one variable to changes in another variable. Types of Elasticity in Economics. Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price.According to basic economic theory, the supply … The phrase “relative response” is best interpreted as the percentage change. Here the term responsiveness means the time required to respond to a particular demand.It is ensured that the time required to respond should be as low as possible. Types of price Elasticity of Demand. If supply is elastic (i.e. Price elasticity of supply is used as a measure to identify how the supply of a particular product and service reacts with the change in price of the same and higher price elasticity will denote that the producers and sellers of a particular goods and services are highly sensitive to even the slightest of changes or fluctuations with respect to its prices. The price elasticity of supply (PES or E s) is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price..

E s >1 and the supply curve has an intercept on the Y-axis or a negative intercept on the X-axis. three types of Elasticity ... Elasticity in supply determines whether or not the object's quantity supplied would change if there is a change in price.

The elasticity is represented in numerical form, and is defined as the percentage change in the quantity supplied divided by the percentage change in price. Price Elasticity of Supply Definition. Let us breakdown this definition. Some of the most important factors are the price of the good or service, the price of other goods and services, the income of the population or person and the preferences of the consumers. The price elasticity of supply for such a case is greater than 1, i.e. Elasticity in economics expands the principles of supply and demand by examining how these two forces respond to changes in prices or incomes. Elastic supply (an increase in price causes a relatively large increase in quantity supplied) 2. This form of elasticity can also have an effect on the supply chain strategy of a company if they want to remove excess supply from their inventory, but without directly changing the price of that product. The types of elasticity of demand are income elasticity, price elasticity, and cross elasticity and the same is the case with the types of elasticity of supply. PES > 1), then producers can increase output without a rise in cost or a time delay; If supply is inelastic (i.e.