ELASTIC SUPPLY Meaning and
Definition
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Elastic supply refers to the responsiveness or sensitivity of the quantity supplied of a particular good or service to changes in its price. In other words, it is a measure of how easily and significantly the supply of a product can change in response to changes in its price. A product or service is said to have an elastic supply when a small change in price leads to a proportionally larger change in the quantity supplied.
The concept of elastic supply is an important one in the field of economics as it helps in understanding the relationship between price and supply. If a good or service has an elastic supply, producers can easily adjust their production levels in response to changes in price, enabling them to meet the demand of consumers more efficiently. This can result in a relatively smooth and stable supply of the product in the market.
On the other hand, a good or service with an inelastic supply means that the quantity supplied is unresponsive or less responsive to changes in price. This can occur when producers face challenges in adjusting their production levels quickly or when there are constraints such as limited resources or time involved in increasing production. An inelastic supply can result in price volatility, shortages or surpluses, and less efficient allocation of resources.
Common Misspellings for ELASTIC SUPPLY
- wlastic supply
- slastic supply
- dlastic supply
- rlastic supply
- 4lastic supply
- 3lastic supply
- ekastic supply
- epastic supply
- eoastic supply
- elzstic supply
- elsstic supply
- elwstic supply
- elqstic supply
- elaatic supply
- elaztic supply
- elaxtic supply
- eladtic supply
- elaetic supply
- elawtic supply
- elasric supply
Etymology of ELASTIC SUPPLY
The etymology of the term "elastic supply" is derived from two words: "elastic" and "supply".
1. Elastic: The word "elastic" comes from the Latin word "elastica", which means "resilient" or "flexible". It is related to the Greek word "elastos", which also means "flexible". In this context, "elastic" refers to the ability to stretch or expand easily and return to its original form or size.
2. Supply: The word "supply" has its roots in the Old French word "soupleer", meaning "to complete" or "to make full". It is influenced by the Latin word "supplere", which means "to fill up". "Supply" is commonly used to refer to the quantity of goods or services that are available for purchase or consumption in the market.
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