Price Elasticity oj Supply
Ill Proportional change in amount supplier Amount Supplied
Proportional change in Price
III materialistically symbols. the price elasticity of call he expensive as Es is the price elasticity of supply, is the quantity supplied. D lJ is the proportional change in the quantity supplied, p is the price of the good supplied, D I’ is the proportional change in the Punch of the

The following diagrammatic (Figure 21.7) is adopted for the measurement of the elasticity of supply: SS’ is the supply curve and three tangent-,s arc drawn touching it at 1′, Q and R and are extended 10 intersect both axes. For instance. the tangent at P cuts the horizontal axis at M and the vertical axis at L: the tangent at Q cuts both at the origin 0, whereas the tangent at R cuts horizontal axis at M’ and vertical axis at L’. The price elasticity of supply at a point is measured by the distance along a tangent to the horizontal axis divided hy the distance along it to the vertical axis, Till Is,