Supply Elasticity

Business, Legal & Accounting Glossary

Definition: Supply Elasticity

Supply Elasticity

Full Definition of Supply Elasticity

The degree to which a price change for an item results from a unit change in supply. Supply elasticity is equal to percent change in quantity divided by percent change in price. The higher the ratio, the more dramatically the price changes in response to a change in supply. Supply elasticity of a product is usually dependent upon the current supply of that product. At low levels of supply, supply elasticity tends to be high and it becomes less so as supply rises. This is because as supply increases, it becomes more difficult for producers to increase supply further as production approaches full capacity.

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Modern Language Association (MLA):
Supply Elasticity. Payroll & Accounting Heaven Ltd.
April 18, 2024
Chicago Manual of Style (CMS):
Supply Elasticity. Payroll & Accounting Heaven Ltd. (accessed: April 18, 2024).
American Psychological Association (APA):
Supply Elasticity. Retrieved April 18, 2024
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Definition Sources

Definitions for Supply Elasticity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.