Supply and elasticity of supply

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Supply and elasticity of supply

  1. 1. Supply And Elasticity Of Supply <ul><li>1.WHAT IS SUPPLY ? </li></ul>
  2. 2. DEFINATION SUPPLY REFERS TO THE QUANTITY OF A COMMODITY A SELLER IS PREPARED TO SELL AT A GIVEN PRICE AND DURING SOME PARTICULAR TIME.
  3. 3. FACTORS AFFECTING SUPPLY <ul><li>INDIVIDUAL SUPPLY </li></ul><ul><li>Commodity’s own price </li></ul><ul><li>Price of the related goods </li></ul><ul><li>Goals of the firm </li></ul><ul><li>State of technology </li></ul><ul><li>MARKET SUPPLY </li></ul><ul><li>Number of producer </li></ul><ul><li>Future expectation of price </li></ul><ul><li>Taxes and subsidies </li></ul><ul><li>Natural factors` </li></ul>
  4. 4. <ul><li>LAW OF SUPPLY- </li></ul>According to law of supply “other things being equal,the supply of a commodity increases with increases in its price and decreases with a fall in price.
  5. 5. WHAT IS ELASTICITY OF SUPPLY-
  6. 6. DEFINATION- ELASTICITY OF SUPPLY CAN BE DEFINED AS A MEASURE OF DEGREE OF RESPONSIVENESS OF SUPPLY TO CHANGE IN PRICE
  7. 7. IN MATHEMATICAL TERMS IT CAN BE MESURED BY- E S =PERCENTAGE OF CHANGE IN QUANTITY SUPPLIED / PERCENTAGE CHANGE IN PRICE
  8. 8. THANKS FOR COOPERATING FREINDS

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