Elasticity of Supply
Elasticity of supply can be defined as proportionate change in quantity supply for a good due to the proportionate change in its price, other things remaining the same . In other words, it is the ratio of percentage change in quantity supply of a good and its price. It deals with the change in direction as well as magnitude (value ) in quantity supplied for a commodity due to change in its price. It means that, how to and by how much there is change in qunatity supply due to 1% change in its price. Thus,
