Useful Notes on 5 Kinds of Elasticity of Supply

There are five kinds of elasticity viz.

(a) Perfectly inelastic supply

(b) Perfectly inelastic supply

(c) Unitary elastic supply

(d) Relatively more elastic supply and

(e) Relatively less elastic supply

(a) Perfectly elastic supply (E_s =):

Perfectly elastic supply is a situation when quantity supplied changes infinitely. When price change is very small or in significant. Here supply curve is parallel to OX axis and value of elasticity of supply is infinite.

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(b) Perfectly inelastic supply (E_s =):

When quantity supplied of a commodity does not respond at all to any change in price, the supply is said to be perfectly inelastic or zero elastic.

(c) Unitary elastic supply (E_s =):

A supply is said to be unitary elastic when percentage change in quantity. Supply is equal to percentage change in price.

For example, 10% change in price in either direction is followed by 10% increase or decrease in supply of the commodity. In such cases the supply curve slopes upwards at equidistance from both the axes.

(d) Relatively more elastic supply (ES =):

A supply is said to be relatively more elastic when percentage change in quantity supplied is more than percentage change in price. For example, 10% change in price is followed by more than 10% say 14 change in supply.

(e) Relatively less elastic (E_s =1):

A supply is said to be relatively less elastic when percentage change in quantity supplied is less than percentage change in price. For example, 20% change in price is followed by 15% change in quantity supplied.