Identify two such situations when elasticity of supply is low even when there is a substantial rise in price due to rise in demand for a commodity.

Open in App

Solution

The two exceptional cases when elasticity of supply is low even with substantial rise in price are:
(i) When existing stocks of the producers/suppliers are low and
(ii) When owing to non-availability of factor and non-factor inputs, it is difficult to increase output in a given time period.

Suggest Corrections

Similar questions

Q. How are the equilibrium price and quantity of a commodity affected when its supply rises and demand is perfectly elastic?

Q. Price elasticity of supply for a commodity is

5

. When price of the commodity rises from

R s . 9

per unit to

R s . 10

per unit, supply rises by

25

units. Calculate quantity supplied at

9

per unit.

Q. Other factors remaining constant, when price of a commodity rises, there is _______ of supply.

The supply of a commodity at a price of Rs 20 per unit is 500 units. A 10 per cent rise in its price results in a 15 per cent rise in its supply. Calculate its price elasticity of supply. Is its supply elastic?

Q. When the price of a commodity changes from Rs.

4

per unit to Rs.

5

unit, its market supply rises from

100

units to

120

units. Calculate price elasticity of supply. Is supply elastic? Give reason.

Join BYJU'S Learning Program

Identify two such situations when elasticity of supply is low even when there is a substantial rise in price due to rise in demand for a commodity.

The two exceptional cases when elasticity of supply is low even with substantial rise in price are:(i) When existing stocks of the producers/suppliers are low and(ii) When owing to non-availability of factor and non-factor inputs, it is difficult to increase output in a given time period.

The two exceptional cases when elasticity of supply is low even with substantial rise in price are:
(i) When existing stocks of the producers/suppliers are low and
(ii) When owing to non-availability of factor and non-factor inputs, it is difficult to increase output in a given time period.