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Published byFranklin Malone Modified over 8 years ago
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Elasticity of Supply Unit 5.4
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Elasticity and Supply Elasticity with supply works just like elasticity with demand. Suppliers look at the amount of change in price, and look at the change in supply.
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Factors that Affect Elasticity of Supply Time – The main factor that affects elasticity of supply – Short Run Over the short run, businesses may only be able to effect changes in limited ways, thus making it difficult to adjust to changes in prices – Long Run Over the long run, businesses can make any changes they want (in theory) Availability of Resources – Difficult to get resources makes supply more inelastic Need for Skilled Labor – The more skilled labor needed, the more inelastic supply becomes
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