4.2 Price Elasticity of Supply LO 3
Elasticity of supply is a measure of the extent to which the quantity
supplied of a product responds to a change in its price. Represented
by the symbol it is defined asSupply tends to be more elastic in the long run than in the short run
because it usually takes time for producers to alter their output in
response to price changes.ηS,ηS=PercentagePercentagechangechangeinquantityinpricesupplied