Dr.K.Baranidharan
Present by…
Engineering
Economics &
Financial
Accountingment
Ee&fa
218 August 2013
FACTORS AFFECTING
ELASTICITY OF SUPPLY
Time has a greater influence on elasticity
of supply than on demand. Generally
supply tends to be inelastic in the short r...
When factors of production are
available in plenty and freely
mobile from one occupation to
another, supply tends to be
el...
Modern methods of production
expand output and hence supply
tends to be elastic. Old methods
reduce output and supply tend...
If cost of production rise rapidly as
output expands, then there will not
be much incentive to increase
output as the extr...
If the seller is selling his product in
different markets, supply tends to be elastic
in any one of the market because, a ...
Political conditions may disrupt
production of a product. In that
case, supply tends to become
inelastic.
POLITICAL CONDIT...
Supply tends to become more
elastic if there are more sellers
freely selling their products and vice
versa.
NUMBER OF SELL...
A firm can charge a higher price for its
products, if prices of other products
are higher and vice versa.
PRICES OF RELATE...
If the seller is happy with small
output, supply tends to be
inelastic and vice versa.
GOALS OF THE FIRM
Movement along the supply curve
• Economics use the term’change in
quantity suoolid’ for a movement
along the supply curve...
Dr.K.Baranidharan
THANK YOU
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EEFA - FACTORS AFFECTING ELESTICITY OF SUPPLY - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY - DR,K,BARANIDHARAN

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EEFA - FACTORS AFFECTING ELESTICITY OF SUPPLY - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY - DR,K,BARANIDHARAN

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EEFA - FACTORS AFFECTING ELESTICITY OF SUPPLY - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY - DR,K,BARANIDHARAN

  1. 1. Dr.K.Baranidharan Present by…
  2. 2. Engineering Economics & Financial Accountingment Ee&fa 218 August 2013
  3. 3. FACTORS AFFECTING ELASTICITY OF SUPPLY
  4. 4. Time has a greater influence on elasticity of supply than on demand. Generally supply tends to be inelastic in the short run because time available to organize and adjust supply to demand is insufficient. Supply would be more elastic in the long run. TIME PERIOD
  5. 5. When factors of production are available in plenty and freely mobile from one occupation to another, supply tends to be elastic and vice versa. AVAILABILITY AND MOBILITY OF FACTORS OF PRODUCTION
  6. 6. Modern methods of production expand output and hence supply tends to be elastic. Old methods reduce output and supply tends to be inelastic. TECHNOLOGICAL IMPROVEMENTS
  7. 7. If cost of production rise rapidly as output expands, then there will not be much incentive to increase output as the extra benefit will be choked off by increase in cost. Hence supply tends to be inelastic and vice versa COST OF PRODUCTION
  8. 8. If the seller is selling his product in different markets, supply tends to be elastic in any one of the market because, a fall in the price in one market will induce him to sell in another market. Again, if he is producing several types of goods and can switch over easily from one to another, then each of his products will be elastic in supply. KINDS AND NATURE OF MARKETS
  9. 9. Political conditions may disrupt production of a product. In that case, supply tends to become inelastic. POLITICAL CONDITIONS
  10. 10. Supply tends to become more elastic if there are more sellers freely selling their products and vice versa. NUMBER OF SELLERS
  11. 11. A firm can charge a higher price for its products, if prices of other products are higher and vice versa. PRICES OF RELATED GOODS
  12. 12. If the seller is happy with small output, supply tends to be inelastic and vice versa. GOALS OF THE FIRM
  13. 13. Movement along the supply curve • Economics use the term’change in quantity suoolid’ for a movement along the supply curve which takes place when the price of the commodity changes. • Other words it is the law of supply the explains the movement along the supply curve. Faculty of Business and Economics (FBE), The IIPM, New Delhi
  14. 14. Dr.K.Baranidharan THANK YOU

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