elasticity of supply
(e-las-ti-ci-ty-of-sup-ply)
8 syllables
Definition
noun. a measure of how much the quantity supplied of a good changes in response to a change in price; it indicates the responsiveness of suppliers to price changes.
Example Sentence
The elasticity of supply for luxury goods is often higher than for essential items.
More Example Sentences
Understanding the elasticity of supply helps businesses make better pricing decisions.
Synonyms
price responsiveness; supply responsiveness; supply elasticity
Antonyms
inelastic supply; unresponsive supply; rigid supply
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elasticity of supply
